New Delhi, April 05: The Cabinet Committee on Economic Affairs headed by Prime Minister Manmohan Singh is likely to clear London-listed mining group Vedanta Resources’ USD 9.6 billion acquisition of Cairn India tomorrow after overruling the law ministry’s opinion on state-owned ONGC’s rights.
“The Cabinet Committee on Economic Affairs (CCEA) has been scheduled for tomorrow afternoon…in all likelihood, it will give an in-principal approval to the Cairn-Vedanta deal,” an official privy to the development said.
The Cabinet panel, which will besides Prime Minister, includes Finance Minister Pranab Mukherjee, Home Minister P Chidambaram, Oil Minister S Jaipal Reddy, Environment Minister Jairam Ramesh, Law Minister M Veerappa Moily and Corporate Affairs Minister Murli Deora, may overrule opinion of the Solicitor General of India that Vedanta must agree to equitably share royalty on oil produced from Cairn India’s mainstay Rajasthan oilfields before the government nod.
-Agencies