Oil Drilling and Exploration major, Cairn India has unveiled its plans to invest US$2bn for developing oil fields in Rajasthan and to build a crude pipeline over the next 18 months.

Under the plan, Oil fields named Mangala, Bhagyam and Aishwariya would be developed in Rajasthan, which entail an investment of US$850mn.

Recently, Cairn India has flagged off its 600-kilometer pipeline project to transport crude oil from its Rajasthan fields to the country's west coast.

Oil production from the Mangala field is expected to be commissioned in the second half of 2009 whereas output from the Bhagyam and Aishwariya fields will start in 2010.

The company also plans to start test drilling in the Ganga Valley block in Bihar by the end of the current year or early next year.

At present, Cairn India is developing 3.05bn barrels of oil equivalent and its gross reserves are 5.1bn barrels.

Cairn India expects cash flow of US$3bn at oil prices of US$100 per barrel.

Stock of Cairn India ended the day ( 25 June 2008), at Rs 267, up 2.68 per cent on National Stock Exchange.