New Delhi, Jul 1: Despite Oil and Natural Gas Corporation's (ONGC) objection to the deal, Cairn-Vedanta deal has received a conditional green signal.
Group of Ministers (GoM) met on May 27 and most of their recommendations have been approved by the Cabinet Committee on Economic Affairs (CCEA).
Petroleum Minister Jaipal Reddy, while explaining the conditions on the much-awaited deal, stated, "You are aware that we took the matter to the CCEA on Apr 6, 2011 which in turn referred the matter to GoM headed by Pranab Mukherjee."
"The GoM choose to recommend conditional approval and these conditions were - royalty should be treated as cost recoverable; and the ongoing arbitration case should be withdrawn. The GoM recommended that both these conditions should be enforced. The CCEA has endorsed these recommendations," he added.
Earlier, ONGC had proclaimed that without its (ONGC's) approval, UK's Cairn Energy Plc can not sell its stake in Cairn India to London based Vedanta Resources.
The other conditions on the deal are:
- Cairn India's partners have to give no objection certificate to the company.
- Financial guarantees will be allocated by Vedanta,
- Vedanta will obtain all regulatory clearances including those from SEBI.