Cairn India Limited (CIL) has received the coastal regulatory zone clearance to drill 10 wells in the PR-OSN-2004/1 block in Nellore district of Andhra Pradesh at an investment outlay of $150 million. The block had been awarded by the government during the NELP-VI licensing round in 2007. Exploration activities will be carried out as per the production sharing contract signed between CIL and the central government. CIL will take up three wells in the first phase in early 2017. Part of the Palar basin, the block is located in the Bay of Bengal in the continental shelf area along the coast of Andhra Pradesh and Tamil Nadu. Its total area is 9,416.54 square km, of which about 4,000 square km has been declared as a no-go area, as restrictions on drilling activity have been imposed by the Department of Space. Based on results of 2D and 3D seismic surveys done in 2008-09, eight hydrocarbon leads are considered prospective for further activity.