India considering Cairn India-Vedanta merger proposal in a positive frame of mind
By ANISunday, February 6, 2011
NEW DELHI - Union Petroleum and Natural Gas Ministry on Sunday said that it is considering the proposal of merger of Cairn India and London-listed Vedanta in a positive frame of mind.
Union Petroleum and Natural Gas Ministry Secretary S. Sundareshan disclosed this in the national capital on Sunday.
The deal, which was announced on August 16, 2010, has been awaiting green signal from the government.
Sundareshan, who chaired the meeting with senior executives of Cairn India and Vedanta, said that the proposal had been received by the Ministry in November last year.
He noted that it had been reckoned in right perspective.
“The final application from Cairn energy was received by the Ministry only in the end of November. The letters they had written earlier did not seek specific permission as per the production and sharing contract. So, the Ministry has moved very fast,” Sundareshan said.
“They have recognized this and we are discussing the various issues which concern the finalization of deal in a very positive frame of mind,” he added.
Vedanta would spend upto 9.6 billion dollars to acquire 51 to 60 percent in Cairn India.
The proposal has not been accepted by state-run Oil and Natural Gas Corporation, which partners Cairn India in all its three producing blocks besides five other blocks.
Cairn India is one of the biggest private companies engaged in exploration and production of oil and sources of natural gases. (ANI)
