NOC in limbo: Differences between ONGC, Cairn on payment

ONGC may take a little longer to issue an NOC to Cairn for the Vedanta deal. While the two companies have now decided Cairn will pay ONGC in dollars for the royalty the companies are yet to decide at what exchange rate, reports CNBC-TV18's Nayantara Rai quoting sources.

On September 27, the ONGC board had actually agreed to give that NOC provided they got a written pact from Cairn India for withdrawing the cess arbitration and also working out as far as a contentious royalty issue is concerned. Cairn will have to reimburse ONGC for the royalty that ONGC has been paying on the behalf of Cairn at the Barmer oilfield and this is where the complication is lying.

Sources say, initially ONGC wanted the reimbursement in Indian currency, however, Cairn wanted to pay in dollars. Now it