Govt to decide on Cairn-Vedanta deal by March

Govt to decide on Cairn-Vedanta deal by March

New Delhi: The government will take a decision by March on whether to allow UK explorer Cairn Energy’s plan to sell majority stake in its local unit to Vedanta Resources, the petroleum minister said, further delaying a key nod by a month.

“We have to move with caution. There are too many complications. We will decide by the end of this financial year," Murli Deora told reporters on Monday.

India’s financial year runs from April to March.

Cairn Energy agreed in August to sell a stake of 40 to 51% in its Indian arm Cairn India to Vedanta in a deal worth upto $9.6 billion.

S. Sundareshan, the top bureaucrat in India’s oil ministry had said last month the government would make its decision before end-February.

Cairn Energy has applied to the oil ministry for transferring Cairn India’s majority stakes in 10 oil and gas block to Vedanta.