June 10, 2011 / 8:31 AM / 6 years ago

India may consider Cairn-Vedanta deal next week: minister

NEW DELHI (Reuters) - India’s cabinet may consider approval for the sale of a stake of British oil explorer Cairn Energy’s (CNE.L) India unit to Vedanta Resources (VED.L) next week, Oil Minister S. Jaipal Reddy said on Friday.

<p>A Cairn India employee works at a storage facility for crude oil at Mangala oil field at Barmer in the desert Indian state of Rajasthan August 29, 2009. REUTERS/Parth Sanyal</p>

Cairn agreed in August to sell up to 51 percent of Cairn India (CAIL.BO) for up to $9.6 billion to Vedanta Resources (VED.L), in a deal which originally had a cut-off date of May 20.

The deal has been delayed due to a dispute over royalty payments with Cairn India’s partner in the Rajasthan project, state-run Oil and Natural Gas Corp (ONGC.NS).

Reddy also said the government was considering a proposed deal between India’s largest listed firm Reliance Industries (RELI.NS) which wants to sell a stake in 23 of its oil and gas blocks, including some in the KG basin, to BP (BP.L) in a $7.2 billion transaction.

The minister also said no dates had yet been fixed for a meeting of a ministerial panel to consider increasing fuel prices. He said he was concerned at the under-recoveries of state-run oil marketing firms due to higher global crude prices.

Reporting by Manoj Kumar; Editing by Krittivas Mukherjee

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