Indian state firms not to counter Vedanta on Cairn-source

NEW DELHI Aug 25 (Reuters) - Indian state-run energy firms Oil and Natural Gas Corp (ONGC.BO), GAIL India (GAIL.BO) and Oil India (OILI.BO) will not counter Vedanta Resources' (VED.L) bid for a stake in Cairn India (CAIL.BO), a top official in the Indian Oil Ministry told Reuters on Wednesday.

"There is no chance for a counter bid by Indian firms as the valuation done by Vedanta for Cairn India is already very high," the person said, declining to be identified.

Last week, India-focused miner Vedanta said it had agreed to spend up to $9.6 billion to buy a majority stake in Cairn India from its UK-based parent Cairn Energy (CNE.L). [ID:nLDE67F074] (Reporting by Nidhi Verma; Editing by Jui Chakravorty)