InvestorQ : Is it true that government plans to seek compensation from Vedanta for Cairn oil pricing?
prachi Patwardhan made post

Is it true that government plans to seek compensation from Vedanta for Cairn oil pricing?

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sara Kunju answered.
2 weeks ago
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The oil ministry plans to seek a huge compensation from Vedanta's Cairn Oil after Delhi High Court held that Vedanta was liable to pay higher profit share to the government after the completion of the 25-year license of the Barmer oil block in Rajasthan. The Barmet block license expired in May 2020. The PSC will be extended for 10% higher profit sharing. Vedanta sought extension on same terms, which was rejected by Delhi High Court.

As per the order, Vedanta is now liable to pay higher profit share for the period they operated the block post May 15, 2020. The only option left for Vedanta was to relinquish the block if it refused to pay the higher profit share, but it still has to pay the higher profit share since May 2020. This will be on top of the Rs.4200 additional compensation already sought from Vedanta.

The Rs.4200 crore recovery is towards reallocation of costs and disallowance of certain costs.

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