A top official from the Oil Ministry said to Reuters that the state-run oil firms are not going to counter bid against Vedanta resources' bid for Cairn India.

The companies in question are Oil and Natural Gas Corp, GAIL India and Oil India. The source who did not wished to be named said in statement, "There is no chance for a counter bid by Indian firms as the valuation done by Vedanta for Cairn India is already very high."

Cairn Energy had asked for support from the Central Government in its attempt to exit for India and for that it wants to sell majority stake to Vedanta. The step was taken after there were news about the possible hostile bids from the other PSU firms.

Talking to media, Chief executive Bill Gammell had said, "We will seek the government of India's endorsement and any necessary consent.... will continue to work closely with the Indian government."

London-listed Vedanta had on August 16 offered to buy 60 per cent stake in Cairn India for $9.6 billion.

Although Vedanta had said that no government approval was needed that doesn't seem to be the case.