New Delhi: The Delhi high court on Thursday gave the central government five weeks to decide whether or not to extend the production sharing contract (PSC) with Cairn India Ltd for the Barmer block in Rajasthan after the original contract ends in 2020.
The court’s directive came after state run Oil and Natural Gas Corp. Ltd (ONGC) told the court that it had approved the extension.
Justice Sanjeev Sachdeva noted the submission of ONGC that a proposal approving the extension was sent to the ministry of petroleum and natural gas.
Cairn had moved the high court in December last year seeking an extension of the agreement.
Cairn India, part of the Anil Agarwal-led Vedanta Group, holds a 70% stake in the Rajasthan block and ONGC owns 30%.
The case will be heard next on 9 September.