Cairn needs ONGC consent to sell India arm stake: Oil Secy

Edinburgh-based Cairn Energy Plc will need to take consent of partner ONGC before selling its majority stake in its Indian unit to Vedanta, Oil Secretary S Sundareshan said today.

The Cabinet Committee on Economic Affairs (CCEA) is likely to consider giving consent to Vedanta acquiring majority stake in Cairn India for $9.6 billion.

"To my mind, they (Cairn) will require ONGC's consent," he told reporters here.

He hoped the Cabinet will soon take a decision on giving approval to the transaction. "The Cairn-Vedanta deal has been placed before the highest levels of government. Hopefully, a decision will be taken very soon."

The oil ministry has conditioned the approval to the $9.6 billion deal on Cairn getting a no-objection from Oil and Natural Gas Corporation (ONGC), which holds stake in eight out of the 10 properties of Cairn India.

Cairn India had on November 23 made conditional application for government nod for the transaction and refused to accept any rights of partner ONGC.

Sundareshan said his ministry had received applications from approval only in November end and the government did not delay in processing the application.