Panel on economic affairs may take up royalty issue after Budget session.
Vedanta Resources may have to wait longer before it proceeds on acquisition of majority stake in Cairn India as the Cabinet Committee on Economic Affairs (CCEA) is likely to take up the proposal only after the Budget session of Parliament ends on March 25.
The ministry of petroleum and natural gas is yet to send the final CCEA note to the Cabinet secretariat. “We do not wish to take it to the Cabinet while the Parliament session is on. Moreover, we are still awaiting comments from all the ministries on the Cabinet note that we circulated,” said an official in the petroleum ministry.
In its note to CCEA, the ministry has proposed that either the government consent be given for the deal along with approval for making royalty cost recoverable along with other conditions or the government decides on the royalty and establishes its right on cess through arbitration.
Vedanta is to acquire a 40 per cent stake from Cairn Energy and make an open offer for an additional 20 per cent to minority shareholders of Cairn India. In case the open offer is not fully subscribed, Cairn Energy will sell the additional shares, but with a cap of 51 per cent, to make up for the shortfall.
Vedanta Resources Group company Sesa Goa is yet to get market regulator Securities and Exchange Board of India (Sebi) approval for an open offer to acquire up to a 20 per cent stake from minority shareholders at a price of Rs 355 a share, Rs 50 less than what it is paying Cairn Energy for a majority stake.