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The Centre will soon decide on the issue of mining group Vedanta Resources' $9.6-billion buyout of Cairn India. The Cabinet will take a decision without ‘sacrificing' on the national interest, Petroleum and Natural Gas Minister S. Jaipal Reddy said here on Friday.
Mr. Reddy's statement follows British Prime Minister David Cameron's letter to his Indian counterpart Mammohan Singh on the issue, seeking an early favourable decision on the Vedanta deal. “The British Prime Minister has raised the issue of the Cairn-Vedanta deal with Dr. Singh, where he wanted the government to facilitate early clearance of the deal. While pressure is normal, we have to address our concerns,” he said after meeting Cairn Energy CEO Bill Gammell.
Cairn Energy of the U.K., which is selling most of its 62.4 per cent stake in the Indian unit to billionaire Anil Agarwal-run Vedanta, is seeking a decision on the contentious issue by this weekend to speed up the transaction by April 15.
“I told them (Mr. Gammell and Cairn India CEO Rahul Dhir) that we are tying to deal with questions as quickly as possible…The Cabinet may decide on it within next three weeks,” he said. Though the matter could have been dealt at his level, but he preferred to take it to the Cabinet Committee on Economic Affairs (CCEA) for approval, the Minister added.
Representatives of Cairn India and its British counterpart had expressed their concern over the uncertainty and delay in regard to clearance to the Cairn-Vedanta deal. They were worried about their timeframe, Mr. Reddy said, and added: “I told them I am naturally concerned about the timeframe.”
The vexed issue is related to Oil and Natural Gas Corporation (ONGC), as the state-run oil firm is liable to pay royalty and cess on behalf of Cairn India in the Rajasthan oilfield.
The Ministry is pushing for an equitable sharing of the liability so that the state-owned firm does not make losses on the fields.
However, Mr. Gammell has said his firm would not go back to its shareholders seeking an extension of the April 15 deadline by which the transaction is to conclude. Following the government nod, the Vedanta group is to make an open offer for buying up to 20 per cent shares from minority shareholder of Cairn India, a process that will take minimum one month.
Mr. Reddy's statement follows British Prime Minister David Cameron's letter to his Indian counterpart Mammohan Singh on the issue, seeking an early favourable decision on the Vedanta deal. “The British Prime Minister has raised the issue of the Cairn-Vedanta deal with Dr. Singh, where he wanted the government to facilitate early clearance of the deal. While pressure is normal, we have to address our concerns,” he said after meeting Cairn Energy CEO Bill Gammell.
Cairn Energy of the U.K., which is selling most of its 62.4 per cent stake in the Indian unit to billionaire Anil Agarwal-run Vedanta, is seeking a decision on the contentious issue by this weekend to speed up the transaction by April 15.
“I told them (Mr. Gammell and Cairn India CEO Rahul Dhir) that we are tying to deal with questions as quickly as possible…The Cabinet may decide on it within next three weeks,” he said. Though the matter could have been dealt at his level, but he preferred to take it to the Cabinet Committee on Economic Affairs (CCEA) for approval, the Minister added.
Representatives of Cairn India and its British counterpart had expressed their concern over the uncertainty and delay in regard to clearance to the Cairn-Vedanta deal. They were worried about their timeframe, Mr. Reddy said, and added: “I told them I am naturally concerned about the timeframe.”
The vexed issue is related to Oil and Natural Gas Corporation (ONGC), as the state-run oil firm is liable to pay royalty and cess on behalf of Cairn India in the Rajasthan oilfield.
The Ministry is pushing for an equitable sharing of the liability so that the state-owned firm does not make losses on the fields.
However, Mr. Gammell has said his firm would not go back to its shareholders seeking an extension of the April 15 deadline by which the transaction is to conclude. Following the government nod, the Vedanta group is to make an open offer for buying up to 20 per cent shares from minority shareholder of Cairn India, a process that will take minimum one month.