Government says, the legitimate concerns of ONGC will have to be addressed before it can approve Vedanta Resources' 9.6 billion Dollar acquisition of Cairn India. CEO of Cairn Energy Bill Gammell, which is selling up to a 51 per cent stake in its Indian unit to Vedanta, met Petroleum Minister S Jaipal Reddy today to press for an early decision. Later, Reddy said he had told him that the government will support the deal in-principle, but some of the concerns of ONGC need to be addressed before clearing the deal. He said Gammell seems satisfied.ONGC, by virtue of its stake in 8 out of the 10 oil and gas properties held by Cairn India, claims that it has pre-emption rights over the deal. It wants the issue of excess royalty it has to pay on Cairn India's mainstay Rajasthan block to be addressed before giving its no-objection.
News On AIR | February 8, 2011 4:57 PM
Govt for resolving ONGC concerns before nod to Vedanta-Cairn deal