Amitha Muraleedharan
The government moved to court to secure dues of about $500 million from Vedanta, whose refusal has resulted in the delayed renewal of the contract for its Rajasthan oil block.
Vedanta has approached an arbitration tribunal for resolution when the government demanded $500 million.
The government had demanded after the audit showed a discrepancy in Vedanta’s cost recovery claims.
The government moved to the High Court as it took a long time for the arbitration process.
Petroleum secretary Tarun Kappor told,
“We want to support private sector companies working in the sector and are aware that they have to make large investments in exploration and production of crude oil and gas.”
Vedanta’s 25-years production sharing contract in Barmer, Rajasthan, came to an end in May this year. It is now seeking an extension and so, as per the policy, Vedanta needs to clear its due.
