Vedanta offered to buy up to a 60 per cent stake in Cairn India for a sum of $9.6 billion in August 2010. But due to differences between Cairn and Oil Natural Gas Corp (ONGC) over the payment of royalties the deal has been pending. ONGC has been pushing for an equal share of the royalties before the government approves the sale and Vedanta has mentioned its unwillingness to proceed with the deal if it is asked to share the royalty burden. The cabinet is split over whether the royalty row should be settled before or after the sale goes through.
Cairn Energy has said to the Indian government that the deadline for sealing the transaction will not be stretched beyond the current extended deadline of May 20 as per Industry sources.