Resolve royalty row before approving Cairn-Vedanta deal: ONGC tells govt

NEW DELHI: State-owned Oil and Natural Gas Corp has asked the government not to approve London-listed Vedanta Resources' $9.6 billion acquisition of Cairn India until the issue of excess royalty it pays on Rajasthan crude oil is sorted out.

ONGC holds a 30% stake in Cairn India's mainstay Rajasthan oilfields. Its board on Saturday recommended that the royalty it pays not only on its share, but also on the 70% share of Cairn India, should be deducted from the price realised on the sale of crude oil from Mangala and other oilfields in the Rajasthan block.