Reddy: Strict stand

New Delhi, Feb. 18: The government today made it clear that it would not be under any pressure to meet the deadline set by Cairn Energy to clear the Vedanta deal as issues related to royalty and cess needed to be addressed.

“I told them (Cairn Energy CEO Bill Gammell and Cairn India CEO Rahul Dhir) that we are trying to deal with the questions as quickly as possible. The matter (is being) taken to the cabinet and it will be looking at the question very quickly, in a time frame of three weeks,” petroleum minister Jaipal Reddy said.

Gammell followed up a February 15 letter that sought a decision by February 20 with a meeting with Reddy today, the second in as many weeks.

“There are issues relating to royalty and cess. We cannot sacrifice our position just to facilitate the deal,” the petroleum minister said.

Reddy confirmed that British Prime Minister David Cameron had written to Prime Minister Manmohan Singh to facilitate the deal. “While (such) pressures are natural, we have to address our concerns,” Reddy said.

While India’s image as an investor friendly country has to be protected, Cairn “should be able to accommodate” the three-week time that the cabinet needs to take a decision, he said.

According to Reddy, the decision for Vedanta Resources’ $9.6-billion buyout of Cairn India will be taken by the cabinet without “sacrificing” national interest.

UK’s Cairn Energy, which is selling most of its 62.4 per cent stake in the Indian unit to Vedanta, is pressing for a decision by this weekend to conclude the transaction by April 15.