Et ça traine!!!GoM plans to meet for Cairn-Vedanta deal on A
Published on Wed, Apr 27, 2011 at 18:46 | Source : CNBC-TV18
Updated at Wed, Apr 27, 2011 at 19:18
2011 Stock Forecast www.taipanpublishinggroup.com
The group of ministers (GoM) to look into the Cairn-Vedanta deal has finally been notified. CNBC-TV18’s Nayantara Rai reports on what is the composition of GoM and what are the options available in front of them.
On April 6, the CCA had met and decided to refer the USD 9.6 billion Cairn-Vedanta deal to the group of ministers, which is very small.
Source at the oil ministry said that the people who will be making up the GoM will have the Finance Minister heading it. Oil minister Jaipal Reddy, law minister Veerappa Moily, deputy chairperson of the planning commission Montek Singh Ahluwalia and Kapil Sibal will also be a part of the GoM.
The high level source at the oil ministry said that while it is a small GoM, all the issues placed before the group will be legal in nature. This GoM will be deliberating the terms of reference to be discussed in a cabinet note, which had been floated by the oil ministry and had feedbacks from all the several ministries.
Two options in the cabinet note
One, should the ministers give the Cairn-Vedanta deal a blanket nod and then try to sort all the contentious issues like the royalty issue for the Barmer oil fields with respect to ONGC.
Second, there should be certain pre-conditions on the deal to go-ahead. It is for Cairn India to withdraw the CES arbitration and to sort out the royalty issue and agree whether it is indeed cost recoverable.
Kapil Sibal will have a lot of answers because the Solicitor General Gopal Subramanium has been of the opinion that for this deal to go through there should be pre-conditions aside.
The sources said that there was a tentative plan of meeting of the GoM on April 30. However, the Finance Minister is not available as he is busy with elections. Thus, one has to wait and watch whether the GoM is able to meet Cairn Vedanta's deadline of May 20 or not.
http://www.moneycontrol.com/news/cnbc-t ... 38773.html
« L'aventure n'existe pas. Elle est dans l'esprit de celui qui la poursuit, et dès qu'il peut la toucher du doigt, elle s'évanouit pour renaître bien plus loin, sous une autre forme, aux limites de l'imagination. »
( Pierre Mac Orlan )
( Pierre Mac Orlan )