CCEA may take final decision on Cairn-Vedanta tomorrow

There may be a final decision on the USD 9.4 billion Cairn-Vedanta deal as the Cabinet Committee on Economic Affairs (CCEA) meets on Thursday, reports CNBC-TV18. 

Earlier, Oil Minister S Jaipal Reddy had said that the CCEA, chaired by Prime Minister Manmohan Singh was to meet in order to consider the recommendations of a Group of Ministers that went into the issue of granting approval for Cairn India's parent firm, Cairn Energy, to sell its stake to Vedanta. The GoM headed by Finance Minister Pranab Mukherjee had on May 27 asked for the contentious issue of royalty-sharing between state-owned ONGC and Cairn India in the Rajasthan fields to be renegotiated and stated that Cairn should accept its liability to pay cess on oil production. If the conditions are imposed it is likely to affect the deal materially. The CCEA is expected to go along with the GOMs recommendations. It is an interesting set of event to watch out if these conditions are indeed accepted by Cairn Energy as well as Cairn India.