Cairn Energy Plc said on Tuesday the company will assess whether the proposal to merge Cairn India into Vedanta Ltd is in its interest.

“We note the announcement from Vedanta and will assess whether the proposal is in the interest of Cairn Energy Plc as a shareholder in Cairn India in due course," the company said in a statement.

Cairn Energy holds 9.82 per cent in Cairn India. The company is not allowed to sell its stake as result of an ongoing tax dispute with the Indian Government.