Not possible, apt to agree to any terms: Vedanta to oil min

Furthering the USD 9.6 billion Cairn-Vedanta deal saga, CNBC-TV18's Nayantara Rai learns that Vedanta has told the oil ministry that it would be neither possible nor appropriate for it to agree to the proposals put forth by the government to go through.

The government has given 11 pre-conditions for giving its green signal to this transaction and these pre-conditions include the acceptance of ONGC's claim that royalty at the Prolific Barmer Field is cost recoverable and withdrawal of outstanding litigation on the Cess issue. Vedanta has written to the oil ministry stating, "We understand that these would have material adverse impact on Cairn India's value and thus negatively impact the interests of all shareholders including the minority shareholders. Acceptance of any of these proposals is likely to be challenged by Cairn India's minority shareholders under the provisions of the Companies Act. As such you will kindly appreciate that we are not in a position to accept these.