Govt unlikely to clear Vedanta-Cairn deal in a hurry - Economic Times

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NEW DELHI: The government is unlikely to clear London-listed Vedanta Resources' acquisition of majority stake in Cairn India in a hurry, as it sees an opportunity in the deal to settle state-owned ONGC's negative returns from the latter's Rajasthan oil fields.

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Edinburgh-based Cairn Energy is selling the majority of its 62.37 per cent stake in subsidiary Cairn India to Vedanta. But the deal is contingent upon government approval.

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Edinburgh-based Cairn Energy is selling the majority of its 62.37 per cent stake in subsidiary Cairn India to Vedanta. But the deal is contingent upon government approval. "Oil and Natural Gas Corp (ONGC) has invested $1.3 billion in Rajasthan fields (which are Cairn India's biggest assets) and ideally, it is ONGC who should takeover Cairn Energy's interest," a senior government official said.

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Govt unlikely to clear Vedanta-Cairn deal in a hurry - Economic Times

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This page contains a single entry by Viraj published on August 15, 2010 9:34 AM.

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