Govt says hopeful of clearing Cairn-Vedanta deal
Govt says hopeful of clearing Cairn-Vedanta deal
February 07, 2011 / 08:47 IST
India's oil secretary said on Sunday he was hopeful of finding a "positive solution" to Cairn India's plans to sell controlling stake in its Indian unit to Vedanta Resources.
Cairn Energy agreed in August to sell 40 to 51% in Cairn India to Vedanta but the deal has been delayed on rumblings from the Indian government and its partner in the big Rajasthan block, Oil and Natural Gas Corp."We had constructive discussions with the representatives of Cairn and Vedanta. We hope to move forward to a positive solution," S Sundareshan told reporters.Separately, Cairn India also termed Sunday's meeting with Indian officials as "constructive", adding that it hoped to seal the deal by April 15.The approval will expedite completion of the biggest merger and acquisition deal in Indian oil sector and boost investor sentiment about the business climate in the Asia's third-biggest economy which is now struggling to tame a high inflation.State-owned ONGC, which has a 30% stake in Cairn-operated Rajasthan fields and pays royalty on the entire output, has said it would not block the planned deal but wanted the royalty issue to be resolved at the earliest. Discover 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!
