If shareholders okay Vedanta deal, govt has no issue: Khurshid | business | Hindustan Times
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If shareholders okay Vedanta deal, govt has no issue: Khurshid

business Updated: Aug 25, 2010 19:34 IST

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The government on Wednesday said it will have no issue with Vedanta Resources acquiring Cairn India if shareholders of both the companies approve the deal.

"If shareholders approve, we have nothing to do...If shareholders have a problem, they can go to the High Court, CLB or us. We (MCA) should not be sitting here and prying on people," Corporate Affairs Minister Salman Khurshid told reporters when asked if the government has any issue with the $9.6 billion deal between the two.

London-listed mining group Vedanta Resources has entered into a deal to acquire 60 per cent stake in Cairn India, the owner of India's largest oilfield for $9.6 billion. It will mark the NRI billionaire Anil Aggarwal-owned Vedanta entering the oil business.

Vedanta's deal is contingent on government approval, as Cairn's three producing oil and gas assets, including the Rajasthan fields and seven exploration blocks, either have explicit provisions for seeking prior approval before transfer of interest or gives pre-emption, or the right of first refusal (ROFR), to partners like public sector ONGC.

Asked about the Centre halting bauxite mining by Vedanta group company in Orissa on environmental issues, Khurshid said, "We cannot blindly push development. Development is important, but it must be under an agreed system of law and people must follow it."

Yesterday, the government rejected environment clearance to Vedanta Resources to mine bauxite for the USD 1.7 billion aluminum project in Orissa.