With parent company Cairn Energy having accepted the riders imposed by the government for granting clearance to the $6-billion stake sale to Vedanta Resources, the board of directors of Cairn India is scheduled to meet on Wednesday to consider royalty and cess on its Rajasthan oil fields. The Cairn India board, which had in February opposed changes in the Rajasthan contract making it liable to pay royalty and cess (Rs.2,500 a tonne) will meet on Wednesday.
Cairn India board meet on Wednesday to decide on royalty, cess - The Hindu
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Cairn Energy, which owns 52.11 per cent stake in Cairn India, has voted to accept the two government conditions. Vedanta, which has already bought 10 per cent stake in the company from Cairn Energy and another 18.5 per cent from Petronas of Malaysia and other minority shareholders, has also voted for acceptance of the conditions. Cairn Energy Chairman Bill Gammell is understood to have arrived in New Delhi for the meeting. Mr. Gammell had last month skipped the Cairn India shareholders' meet, apparently to escape uncomfortable questions on the change of position. After Cairn India's board agrees to make royalty cost-recoverable and pay cess on oil produced from the Rajasthan fields, it will write to its partner Oil and Natural Gas Corporation (ONGC) for consent for the Vedanta transaction.Cairn India board meet on Wednesday to decide on royalty, cess - The Hindu
