Meeting of Ministerial Panel on Cairn-Vedanta deal postponed

Posted By: Religare
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Meeting of Ministerial Panel on Cairn-Vedanta deal postponed
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A meeting of an Indian ministerial panel, headed by Finance Minister Pranab Mukherjee to advise the cabinet on whether to approve the Cairn-Vedanta deal, has been postponed. No reasons were provided for the postponement. Commenting on the issue, a senior government official said "The meeting was scheduled for 1930 hours today, but it has now been postponed."

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.

Read more about: cairn, vedanta, bse, nse, oil and gas
Story first published: Tuesday, May 3, 2011, 12:32 [IST]
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