Decision on Cairn-Vedanta deal likely in few weeks

The government is likely to take a decision on the $9.6-billion Cairn-Vedanta deal in the next few weeks, a top official said.

"There is absolutely no delay on the part of the government regarding the Cairn-Vedanta deal. We will come to a decision on this (deal) in the course of next few weeks. The decision will be taken on merits," Oil Secretary S Sundareshan told reporters here today.

The Anil Agarwal-promoted Vedanta is acquiring a majority stake in Cairn India from Edinburgh-based Cairn Energy for a consideration of up to $9.6 billion.

The Edinburgh-based Cairn Energy holds a 62.37 per cent stake in Cairn India.

"We have told them (Cairn Energy) that we will require 8-10 weeks to examine all the issues and only then we will take the final decision," he said.

On the controversy over the payment for oil imports from Iran, Sundareshan said, "The flow of oil will not stop and National Iranian Oil Company (NIOC) will continue to supply oil to the Indian oil companies and we are hopeful of a settlement very soon."

He said that a high-level delegation comprising officials from the Reserve Bank, State Bank of India, the Ministry of Finance, Ministry of Petroleum and Natural Gas, Mangalore Refinery and Petrochemicals (MRPL) and IndianOil had gone to Iran to discuss the issue.

"Until a final settlement is worked out, oil supplies will continue and we are hopeful of a settlement very soon," he said.

Following the increase in the prices of crude oil to $92-93 per barrel, he said that the under-recoveries were likely to reach Rs 72,000-crore by the end of this fiscal.

On divestment in ONGC and Indian Oil, Sundareshan said, "the ONGC FPO will hit the market by end-this fiscal. We plan to raise around Rs 13,000-14,000-crore through the divestment. However, due to fluctuations in crude oil prices, the Indian Oil FPO will take place only in the next fiscal."