By IANS,
New Delhi : The $9.6 billion Cairn-Vedanta deal is delayed because it is a complex issue involving scarce national resources and it should not be seen as an attempt to block a foreign investment deal, Commerce and Industry Minister Anand Sharma said Friday.
“It should not upset anybody. It is not a simple proposal. Scarce national resources are involved in it and if it is not addressed, it will impact other similar agreements that ONGC (Oil and Natural Gas Corporation) has with them or with other companies,” Sharma told reporters on the sidelines of annual meeting of the Confederation of Indian Industry (CII) here.
The federal cabinet Wednesday referred the matter to a Group of Ministers (GoM) and extended the deadline for clearance of the deal to May 20 from April 15.
The GoM headed by Finance Minister Pranab Mukherjee will now examine various issues related to the deal, including the matters related to royalties and cess.
“It is wholly appropriate that the Group of Ministers looks into the matter so that there are no loose ends,” Sharma said.
Anil Agarwal-led Vedanta Group has made an offer of $9.6 billion to acquire 51 percent of the Indian subsidiary of the London-based Cairn Energy.
ONGC holds 30 percent stake in each of Cairn India’s three oil blocks as well as some NELP (New Exploration Licensing Policy) blocks like in the Krishna-Godavari basin, where gas has been discovered.
Vedanta Group has already got the the approval for the deal from the market regulator – Securities and Exchange Board of India (SEBI).