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In a setback to the Centre, the Delhi High Court has directed the Ministry of Petroleum and Natural Gas to grant an extension of the production sharing contract to Cairn India for the Barmer block under existing terms and conditions.
In a statement to the exchanges, Vedanta Ltd, the parent company of Cairn India said, “The Delhi High Court on May 31, 2018 allowed the writ petition filed by Vedanta Ltd, directing the Government of India to extend the production sharing contract for the Rajasthan block for a period of 10 years beyond the current contract term in accordance with Article 2.1 of the Production Sharing Contract on the same terms and conditions.”
In April last year, the Centre had approved a policy that allowed the extension of production sharing contracts subject to a 10 per cent increase in the government’s share of profit petroleum.
According to Vedanta’s statement, the Delhi High Court has also directed the government to formally communicate its decision extending the Rajasthan Block Production Sharing Contract within two weeks.
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