The home ministry has cleared British oil firm Cairn Energy's (CNE.L) $6 billion deal to sell a majority stake in its Indian business to Vedanta Resources (VED.L), marking the final government approval needed, a source with direct knowledge of the matter said.
The security clearance from the interior ministry will help move the deal, one of the largest in India's energy sector, towards a conclusion. The deal had been held up for more than a year, mainly due to a disagreement between Cairn and its Indian partner Oil & Natural Gas Corp (ONGC.NS) over royalty payments.
Cairn Energy said on October 20 it expected to conclude the deal shortly, while Vedanta said last month it expected the deal to be completed this quarter.
A spokeswoman for the interior ministry could not comment immediately when contacted by Reuters.
State-run ONGC, which has a 30-percent holding in the Cairn-operated oil and gas fields in western India, agreed in late September to give a no-objection certificate to the deal after Cairn agreed to conditions including the sharing of royalty burden.
India's federal cabinet had given a conditional approval in June this year to the deal, which would give India-focused miner Vedanta a foothold in the oil and gas space.
Cairn Energy, which will own a 22 percent stake Cairn India (CAIL.NS) after the deal, has shifted its focus from India to exploration in Greenland, where it has so far been unsuccessful.
The home ministry has cleared British oil firm Cairn Energy's (CNE.L) $6 billion deal to sell a majority stake in its Indian business to Vedanta Resources (VED.L), marking the final government approval needed, a source with direct knowledge of the matter said.
The security clearance from the interior ministry will help move the deal, one of the largest in India's energy sector, towards a conclusion. The deal had been held up for more than a year, mainly due to a disagreement between Cairn and its Indian partner Oil & Natural Gas Corp (ONGC.NS) over royalty payments.
Cairn Energy said on October 20 it expected to conclude the deal shortly, while Vedanta said last month it expected the deal to be completed this quarter.
A spokeswoman for the interior ministry could not comment immediately when contacted by Reuters.
State-run ONGC, which has a 30-percent holding in the Cairn-operated oil and gas fields in western India, agreed in late September to give a no-objection certificate to the deal after Cairn agreed to conditions including the sharing of royalty burden.
India's federal cabinet had given a conditional approval in June this year to the deal, which would give India-focused miner Vedanta a foothold in the oil and gas space.
Cairn Energy, which will own a 22 percent stake Cairn India (CAIL.NS) after the deal, has shifted its focus from India to exploration in Greenland, where it has so far been unsuccessful.
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