The oil ministry has approved further exploration in Cairn India's operational oilfields in Rajasthan to increase production.

“The proposal was pending with us for more than one and a half years. According to the existing PSC, the contractors are not prohibited for exploration in producing fields, however, we have given our approvals,” a senior oil ministry official said. "Cost-recovery shall be permitted only after commercial viability of finds are established," the official added. Anil Agarwal earlier wrote a letter to oil minister Veerappa Moily seeking permission to explore remaining potential resources in India's biggest onland oilfield. The company plans to ramp up production from its Rajasthan block to 3,00,000 barrels per day.