Oil and Natural Gas Corporation Ltd (ONGC) is looking at the possibility of setting up a refinery in Rajasthan. Ashok Gehlot, the chief minister of Rajasthan, also raised the demand for a refinery while speaking on the occasion of Cairn India’s debut production from the Mangala oilfield. Prime Minister Manmohan Singh, who flagged off the production, said, “Cairn’s efforts show that the investment climate is very good in India.” Senior officials of Cairn India also indicated that the company would prefer to focus on its core activity of exploration and production. ONGC has a 30 per cent interest in Mangala.The Rajasthan block will initially produce 30,000 barrels per day (bpd). The production will be ramped up to 125,000 bpd in the first half of 2010. Along with the Bhagyam and Aishwarya oilfields, Cairn’s total output will be 175,000 bpd in 2011.At their peak production, the Rajasthan fields will account for more than 20 per cent of India’s crude output.