The proposed Cairn Energy-Vedanta Resources stake sale inched closer with a ministerial panel on Friday making its recommendations on the deal. The final call will now be taken by the Cabinet Committee on Economic Affairs (CCEA).
Speaking to newspersons after the meeting, the Petroleum Minister, Mr S. Jaipal Reddy, said, “The GoM has looked at various aspects of the deal and taken a view. The GoM is not going to meet again. This view will be taken to the CCEA in next two weeks (outer limit).”
The Minister, while refusing to disclose the GoM recommendations, stated that “these are only recommendations. Final decision on the deal will be taken by the CCEA.” He further added that that “…proceedings of a GoM are not made public”.
Cairn Energy Plc proposes to sell a maximum 51 per cent stake in Cairn India Ltd to Vedanta Resources for up to $8.48 billion.
The CCEA had referred the matter to a GoM following differences among some ministries on certain legal issues relating to the transaction.
Among other issues the GoM was to take a call on the differences about royalty being borne by ONGC for the pre-NELP Rajasthan oil fields and the dispute on cess being paid under protest by Cairn for the fields.
On whether making royalty cost-recoverable as claimed by ONGC was considered, he refused to comment.
He, however, said that his Ministry's stand on supporting ONGC's claim is in the CCEA note. The Petroleum Ministry in its proposal before the CCEA had suggested that approval to the deal can be given either with or without any conditions, leaving the disputes to be resolved at appropriate authorities.