Reliance Industries and British gas giant BP have begun gas production from the R-Cluster block in the KG-D6 basin.
R-Cluster is the first of the three deepwater gas projects that the companies have planned to develop in the KG-D6 basin.
The three projects are expected to meet 15 percent of India's gas demand and account for around 25 percent of domestic production.
The other two projects Satellite Cluster and MJ Cluster are likely to come onstream in the year 2021 and 2022 respectively.
Probal Sen, senior VP at Centrum Broking said, "From a consumer perspective as well as from Reliance perspective it is a significant development. The bigger importance is that this business becomes a profitable business segment again."
Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.