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Jul 1, 2011

Cabinet approves Crain India and Vedanta Deal

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Cabinet approves Cairn Energy to sell its 40 per cent stake in Cairn India to Vedanta on Friday. The deal is going have huge impact on Cairn India.

It is estimated that the profit of Cairn India will hit as it has to pay royalty to the state owned ONGC (subject to conditions also).

The impact of the deal was clearly visible in the stock market on Friday, the company's shares traded as lower of 2 per cent.

On the contrary, the BSE Sensex in its opening trade touched to 19,000 mark following the global cues and ONGC, which will get a big price from Cairn India as royalty.

However, Cairn India is still holding stakes in 10 oil and gas blocks in India, including Rajasthan state's block at Barmer.


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