New Delhi : Last october 8, shareholds of cair energy PLC a major oil explorer today approved plans to sell the company’s stack in bulk amount to vedanta resources plc. The estimated price for the sale is calculated to $8.48 billion. Vedanta resources plc is a london listed mining company. The sale was unanimously approved by 99% of the shareholders where as the 40 to 51% of the stake of cairn india is decided to sell to vedanta group.

This deal is currently under controvercy due to governments involvement because of its strategic importance.

Anil Agarwal the CEO of Vedanta PLC which is a lond listed company is found to be is inexperienced as far as the oil and gas operations are considered. Govt may ask Vedanta to retain the Carin India management as a pre condition.

The Directorate General of Hydrocarbons, the oil and gas upstream (exploration) sector regulator, may want Vedanta to guarantee that operations at Cairn’s oil and gas assets will not be affected after Vedanta takes over. UK-based Cairn Energy insists that this is only a shere transfer and operations won’t be effected at all.

Financial and other obligations under the Production Sharing Contracts (PSC) Carin India had signed for 10 oil and gas properties, will have to be honoured too.