Govt wants more time to take decision on Vedanta-Cairn deal

Vedanta-Cairn-dealThe Center said that it needs more time to take a final decision on the Vedanta-Cairn deal. It said that it has received response to its queries from the UK's Cairn Energy about London-listed Vedanta buying majority stake in Cairn India.

Talking to FE, an official said, "We have received a response from Cairn. It shall be examined. But it is too early to say."

But inside information suggest that Cairn Energy has told the Indian government that it will comply with all the contractual obligations in the proposed deal.

In a deal which is worth $9.6 billion, Vedanta is going to buy up to 51 per cent stake in Cairn India from Cairn Energy. It will also be buying 20 per cent stake from the open market.

The Petroleum Secretary, S Sundareshan said that the proposed deal is yet to be discussed with the officials in the ministry of law and justice.

ONGC, Cairn India's partner in the prolific Rajasthan Oil has also said to the media queries that it is still looking into the matter and nothing solid can be said about the deal.

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