Cairn India is set to begin production from its Barmer field in Rajasthan at $5 a barrel."We continue to target $3.50 per barrel as lifting cost and $1.50 per barrel for transportation cost. So all in, the delivery cost we are targeting is $5 per barrel, which makes this project very competitive from the cost point of view" Rahul Dhir, CEO, Cairn India, said at the annual general meeting in Mumbai.Initial production is expected to be 30,000 barrels per day (bpd) of oil,which will be increased by a further 100,000 barrels per day in the first half of 2010, he said.Cairn India holds a 70 percent stake in RJ-ON-90/1 block in western India.Cairn also produces crude oil from its Ravva field at around $2 a barrel.Cairn India was up 0.91 percent up 2.15 at Rs 238.95.