PMO asks for Vedanta's track record before approving $9.6-billion acquisition of Cairn India

Posted By: Religare
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PMO asks for Vedanta's track record
The Prime Minister's Office (PMO) has asked Vedanta resources to submit a detailed track record of its operations in the mining and power segment in the Indian subcontinent, a move that might add further delay to the $9.6-billion Crain-Vedanta deal.

The Government has taken this decision after receiving a letter from a former civil servant; a retired secretary to the government of India, EAS Sarma, who has questioned Vedanta's potential to operate successfully in the Indian oil and gas sector, considering its controversial track record in the mining and power operations.

Cautioning the Indian Government on approving the Cairn-Vedanta deal, Sarma quoted, "Vedanta's track record so far in mining and power sectors has not been satisfactory." and "To allow that company to get hold of a sizeable share in the equity of the company that controls the extraction of hydrocarbons in Rajasthan and elsewhere may not be desirable."

Read more about: vedanta, cairn, mining
Story first published: Friday, May 6, 2011, 12:31 [IST]
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