The Union government will appeal against last week's Delhi High Court order that directed it to extend the Production Sharing Contract with Vedanta for its Rajasthan block for a period of 10 years beyond the current contract term in accordance with Article 2.1 of the Production Sharing Contract on the same terms and conditions.
The High Court while giving an order on May 31 also directed the Government to formally communicate its decision extending the PSC for the Rajasthan block within two weeks.
Under a Cabinet approved extension policy, Vedanta had to shell out an extra 10 per cent as government’s share of “profit petroleum” during the extended term of the PSC between 2020 and 2030. Pradhan said the government would stand by its extension policy. Vedanta through Cairn holds 30 per cent in RJ-ON-90/1 block.
Since the order was passed by a single-judge bench, the government could file an appeal before a larger bench of the High Court or go to the Supreme Court.
The current PSC is due to expire on May 14, 2020. The Barmer block was among the 10 that were granted an extension under the new policy last year.