The government will take at least another 2-3 weeks to take a decision on the $9.6-billion Cairn-Vedanta deal.
The opinion of the law ministry, which is still awaited, will be the basis for the oil ministry to decide the fate of the billion dollar transaction.
Vedanta has also objected to the ministry proposal to ask Cairn India to accept the government position in cases where the company has initiated arbitration.
Row may now go for international arbitration; stalemate continues over $9.6-billion Cairn-Vedanta deal.
The recent cabinet reshuffle in which Jaipal Reddy replaced Murli Deora as oil minister is adding to the uncertainty about the appointment.
The technical arm of the oil ministry has certified that Vedanta Resources has sufficient technical capabilities to operate country's oil and gas blocks held by Cairn India, brightening prospects of the $9.6-billion deal.
Top oil marketing firms have deferred the announcement of quarterly earnings, putting pressure on the government to quickly release Rs 10,000 crore as compensation. NEW DELHI: Top oil marketing firms, facing mounting losses for selling fuel below cost, have deferred the announcement of quarterly earnings, putting pressure on the government to quickly release Rs 10,000 crore as compensation.
ONGC's FPO is likely to be deferred, making it the second equity offering to be a casualty of crude oil's ascent to nearly $100 barrel.
After raising petrol prices by 2.50 per litre, the government has decided to spare consumers from higher rates for cooking gas and diesel by tinkering with the tax regime to ensure oil companies can boost revenues without increasing pump prices.
The government will provide cooking gas connections to 7 million rural households, incurring an additional subsidy of Rs 2,700 crore a year to supply villages with the fuel that is predominantly sold in urban areas.
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