Vedanta-Cairn subject to 11

The Ministry of Oil and Petroleum is willing to give in-principle approval for Vedanta Resources’ acquisition of Cairn India, provided the Vedanta agrees to a set of 11 preconditions. Some of them include Vedanta withdrawing pending lawsuits filed by Cairn with respect to payment of oil cess and accepting ONGC’s preemption rights. Vedanta has to agree to consider the royalty paid on crude oil produced from Cairn’s mainstay Rajasthan block in the project cost and its profits calculated thereafter. Vedanta needs to accept the government’s decision as final and binding, among others.