On Thursday, Indian Government gave a conditional approval to Vedanta Resources to buy a stake in British oil explorer Cairn Energy's Indian business. The Cairn-Vedanta deal is valued at around $ 6 billion.
This decision came as a major relief to the Anil Aggarwal-led Vedanta Resources, which plans to buy majority stake in oil explorer Cairn India.
After a meeting of the Cabinet Committee on Economic Affairs (CCEA), Finance Minister Pranab Mukherjee told reporters that this move will create an appropriate sentiment in the market, and will send a positive signal to the foreign investors.
Cairn Energy agreed last year to sell a 40 per cent stake in Cairn India to Vedanta, in a deal that is valued at $9.6 billion. However the deal was held up due to protests from the state-owned ONGC, which has a 30 percent stake in Cairn India's oilfields in Rajasthan - the biggest onshore finds in the country in two decades.
This decision came as a major relief to the Anil Aggarwal-led Vedanta Resources, which plans to buy majority stake in oil explorer Cairn India.
After a meeting of the Cabinet Committee on Economic Affairs (CCEA), Finance Minister Pranab Mukherjee told reporters that this move will create an appropriate sentiment in the market, and will send a positive signal to the foreign investors.
Cairn Energy agreed last year to sell a 40 per cent stake in Cairn India to Vedanta, in a deal that is valued at $9.6 billion. However the deal was held up due to protests from the state-owned ONGC, which has a 30 percent stake in Cairn India's oilfields in Rajasthan - the biggest onshore finds in the country in two decades.
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Now the government has given its nod to the deal with the conditions that include royalty being cost recoverable for Barmer field in Rajasthan. Under the deal, Cairn will be required to pay 20 percent royalty.
Oil Minister S Jaipal Reddy said the government has given its conditional nod and now it was up to the companies to decide on the deal. "Now the ball is in Cairn and Vedanta court. They have to take further decisions."
Now the government has given its nod to the deal with the conditions that include royalty being cost recoverable for Barmer field in Rajasthan. Under the deal, Cairn will be required to pay 20 percent royalty.
Oil Minister S Jaipal Reddy said the government has given its conditional nod and now it was up to the companies to decide on the deal. "Now the ball is in Cairn and Vedanta court. They have to take further decisions."
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