A USD 10 billion deal for Vedanta Resources to take control of Cairn India and step into the lucrative oil business could falter due to an Indian state-run partner's concerns over royalties, reports the Economic Times.
Oil Minister S. Jaipal Reddy said on Tuesday that state-run Oil and Natural Gas Corp's (ONGC) concerns over the royalties must be addressed for the deal, keenly awaited by shareholders and seen as a barometer of India's investment climate, to go through. ONGC owns 30% of a block in Rajasthan which pumps Mangala crude. Under an agreement drawn up with Cairn when it was fully state-owned and India needed to tempt investors into its budding exploration programme, it pays all the royalties. Source: The Economic TimesDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
