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Cairn report silent on govt conditions

business Updated: Jul 20, 2011 21:00 IST
HT Correspondent

Coming a week before the company's crucial board meeting on July 26, the annual report of Cairn India released on Wednesday is silent on the government's recent pre-conditional approval to Cairn Energy Plc for selling a majority stake in Cairn India to Anil Agarwal-led Vedanta Resources.

This assumes significance as Cairn India has been opposing the decision over sharing the payment of royalty and cess on the oil produced from the Rajasthan oil fields along with ONGC, an important precondition set by the government for approval to the deal.

Cairn India has so far maintained that ONGC, which got 30% stake in the Rajasthan oilfields for free, is contractually liable to pay royalty and cess on the entire production.

However, now that the government has actually made cost recovery of royalty and payment of cess as preconditions for approval, Cairn India MD and CEO Rahul Dhir in the annual report for 2010-11 did not mention a word on it.