According to reports, Cairn agreed in August to sell up to 51% in Cairn India to Vedanta, setting a target date of April 15 to seal the transaction, but the deal has been delayed as issues around royalty payments need to be resolved.
Oil & Gas Round Up - February 14 to February 18, 2011 - India Infoline.com
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According to reports, Cairn agreed in August to sell up to 51% in Cairn India to Vedanta, setting a target date of April 15 to seal the transaction, but the deal has been delayed as issues around royalty payments need to be resolved. The Oil Minister said that the Government can't follow any deadline set by Cairn Energy. "It's not easy for the government to work on a tight schedule for the deal," S. Jaipal Reddy told reporters, adding that there are issues relating to royalties and taxes. Reddy was responding to a query over local media reports that Cairn Energy has asked the Indian government to clear the proposed stake sale by Feb. 20. "We can't sacrifice our position for the deal," Reddy said. On Aug. 16, Vedanta proposed buying 51-60% of Cairn India Ltd. for about US$8.5-9.6bn in cash, but the deal has been delayed due to a lack of government and regulatory approvals in India.Oil & Gas Round Up - February 14 to February 18, 2011 - India Infoline.com
