The Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Manmohan Singh on 24 January 2012 gave final approval to Vedanta Resources's acquisition of a majority stake in Cairn India Ltd for $8.48 billion. The Cabinet gave its final consent to the $8.5-billion Cairn-Vedanta deal after the companies met all conditions set by the government to complete the transaction.
Following the serious issues raised by the Home Ministry the Petroleum and Natural Gas Ministry put up the deal before the CCEA for a review. While giving security clearance to Vedanta's purchase of a majority stake in Cairn India, the home ministry had on 25 November 2011 pointed to eight instances of the mining group or its affiliates being involved in cases of default of payment, human rights violations or environmental damage.
The planned sale of a 40% stake held by Cairn Energy in Cairn India to Vedanta was first considered by the CCEA in April 2011 and approved in June 2011, with certain preconditions. Cairn and Vedanta complied with all the preconditions and concluded the transaction in Decembe 2011.
The final clearance for the controversial deal transfers control of India's largest onshore oilfield to Londonlisted Vedanta Resources
Vedanta thus acquired 58.5 per cent in Cairn India for a total consideration of $ 8.67 billion.
.jpg){kind=logo}
Comments
All Comments (0)
Join the conversation