HYDERABAD: Stating that Krishna-Godavari Basin will become the hub of oil and gas reserves in the country in the coming years, Oil Minsiter Dharmendra Pradhan on Sunday said KG Basin is likely to attract new investment of Rs 1 lakh crore.

"Along with investments from ONGC, GSPC and RIL, from this financial year to the next 5-7 financial years, I am visualising new investment of Rs 1 lakh crore in Krishna-Godavari Basin, creating new employment and setting up downstream industry," Pradhan told reporters here.

"India's east coast, particularly Krishna-Godavari Basin has rich hydrocarbon deposits. Though there is a difference when compared to Mumbai High, where oil and gas is available at a depth of 100 to 200 meters whereas in east coast, the same is available at a depth of 2,000 to 3,000 meters," he pointed out.

And hence, there is lot of differentiation over production costs and technology between Mumbai and the east coast, he said.

"Yesterday, I reviewed ONGC wells and some are dug up to 5,000 meters depth; the temperature is 480 degree Celsius. KG basin is amongst the five most challenging oil fields in the world," he said.

He further said 'gas hydrates' resources finding has been made in the KG Basin, though there is a need for commercially viable technology to tap it.

"We need to invest in technology for tapping them (gas hydrates). Based on preliminary estimates of scientists, if we are able to start production of gas hydrates, this will add a new dimension to India's economy."