Arbitration case: Cairn Energy offers to invest $1.2 bn if India relents

As the tax battle intensifies between India and energy giant Cairn, with New Delhi challenging the $1.2-billion award at The Hague, the UK oil major has reached out to the Indian government through informal channels with a fresh proposal to settle the dispute, though with dim prospects of success.

Cairn Energy has offered to invest the entire award money in India, which includes the principal amount of $1.2 billion and interest of $500 million if the government agrees to enforce the award.

However, the government is unlikely to accede to the proposal, arguing that it would mean accepting the verdict,