Cairn India-Volcan Investment transaction met govt standards, says Vedanta

The investment was made on an arms-length basis in December 2018 after meeting all governance requirements

Anil Agarwal-led Vedanta on Monday clarified subsidiary Cairn India’s transaction in Volcan Investments, saying it would provide significantly higher returns compared to other cash management investments overseas, which would typically earn 2 per cent.

“This investment instrument will give us returns close to 10 per cent in foreign currency by October 2020. This transaction does not change any existing shareholding pattern for any of the companies,” Srinivasan Venka­t­akrishnan, CEO of Vedanta Resources, said. 

Volcan Investments owns 100 per cent stake in London-based Vedanta Resources, which owns 50.1 per cent in Vedanta. Cairn India Holdings is a subsidiary of Vedanta. “This transaction does