India’s state-run Oil and Natural Gas Corp (ONGC) will invest $5.8bn in exploration activities in the upcoming financial year, a ministry official said.

The investment will see a rise of 7.3% from the current financial year.

Minister of State for Finance Jitin Prasada said ONGC will contribute 25.425 million tonnes of crude oil in the coming financial year beginning 1 April, and 26.582 million tonnes in the 2011 / 12 fiscal year, reports Reuters.

India’s first strategic oil reserves at Visakhapatnam in Andhra Pradesh state is expected to be complete by the end of 2012.

India is setting up a strategic crude oil reserve of five million tonnes at three locations in southern India.