Growth visibility boost for Cairn India

This, after the PSC of its Rajasthan Block can now be extended beyond 2020

Cairn India has got a big relief as the Production Sharing Contract (PSC) of its Rajasthan Block, which is a 70:30 partnership with ONGC, can now be extended beyond 2020. The government allowed companies to extend the PSC by increasing the profit-sharing ratio by 10 percentage point. And this should be a major worry, given the larger benefits for Cairn.

For long, the company has been taking efforts to extend the contract, since its major oil and gas producing fields are located in this block. The extension is important as it paves the way for the company to concentrate on increasing