June 30, 2011 8:30 PM

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Govt gives conditional approval to Cairn- Vedanta deal

The government today gave conditional approval for the proposed sale of shareholding by Cairn Energy to Vedanta resources. Briefing media after the meeting of the Cabinet Committee on Economic Affairs (CCEA), the Petroleum Minister Mr. Jaipal Reddy said that the matter was referred to the Group of Ministers headed by Pranab Mukherjee, which recommended certain conditionalities. The conditionalities are that Royalty must be treated as cost recovered and arbitration on Cess should be dropped. In the deal, Cairn India holds 70 per cent operator interest in 6.5 billion barrels Rajasthan block. It plans to stuck 8.4 billion Dollars deal with Vedanta Resources to sell majority stake in the Company. In another significant decision the CCEA approved enhancement of honorarium for Anganwari workers from 1500 rupees per month to 3000 rupees per month and for helpers from 750 rupees to 1500 rupees. The estimated additional cost will be about 3,480 crore rupees per annum.

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