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Our Bureau Vedanta Ltd has got a 10-year extension for Cairn Oil & Gas-operated Rajasthan block in Barmer.
In a statement to the exchanges, Vedanta said: “The Government of India, acting through the Directorate General of Hydrocarbons, Ministry of Petroleum and Natural Gas, has granted its approval for a 10-year extension of the Production Sharing Contract (PSC).”
The tenure was due to expire on May 14, 2020. It has now been extended for an additional period of 10 years with effect from May 15, 2020, the statement said.
The Centre had approved a policy on PSC extension in April, under which a company can get an extension beyond the initial 25 years only if the government's share of profit petroleum is increased by 10 per cent.
Vedanta challenged this policy and the Delhi High Court ruled in favour of the company, asking the Centre to extend the PSC till 2030 under existing terms. This verdict was challenged by the Centre and subsequently put on hold by the Division Bench of the High Court.
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