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| Orissa hopes to place Vedanta project's stand before FAC |
| Press Trust of India / Bhubaneshwar Aug 19, 2010, 18:15 IST |
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The Orissa government has not received an invitation to participate at the Forest Advisory Committee meeting scheduled to be held in New Delhi tomorrow, even as it looks for an opportunity to put forth its stand on Vedanta's controversial Niyamgiri mining project.
"Though we were hopeful of getting an invitation to place our stand before the FAC, no communication had been received from the Ministry of Environment and Forest (MoEF) so far," said a senior official at the forest and environment department here.
Stating that inviting state governments to the FAC meeting is not mandatory, the official pointed out that it is one of the appropriate forums to consider views of both the sides.
While strongly protesting to the objections raised by the N C Saxena Committee on the project, the state government, in a letter to the Union secretary of MoEF, had said: "Hear us before taking any final decision on the proposed mining project".
The Saxena Committee, appointed by the MoEF, had accused the state government of violating at least two acts - Forest Conservation Act and Forest Rights Act - while recommending Vedanta for forest diversion proposal and issuing environmental clearance for mining activities at ecologically fragile Niyamgiri hills in Kalahandi-Rayagada districts.
Cairn Energy is selling up to 51% stake in Cairn India to Vedanta for $8.48 billion at Rs 405 per share, a price that includes a non-compete fee of Rs 50.
The source said, Rs 355 per share is the price at which Vedanta is making an open offer to buy 20 per cent shares from minority shareholders of Cairn India after excluding the non-compete fee.
"Everybody is fishing in troubled waters. Some reports suggest that ONGC should get the non-compete fee. How is it possible. Vedanta is paying the non-compete fee to Cairn Energy to keep it out of bidding from forthcoming New Exploration Licensing Policy (NELP) rounds. Can ONGC afford to keep out of NELP?" he said.
On talk of state oil firms joining together to make a rival bid, the source said the bid would have to be at Rs 425-430 to beat Vedanta's Rs 405 a share offer. "And this kind of bid has to be put together in a very very short time."
Also, the suitor would have to pay a $100 million break-fee to Cairn Energy for breaking its deal with Vedanta.
Even the ROFR that ONGC claims can be challenged by Cairn Energy, as it is not selling its participating interest in the Rajasthan block and the deal with Vedanta is more of a corporate ownership change, the source said, adding the matter would in that case have to be sorted out in the court.
Cairn maintains that the Vedanta deal was a controlling stake transfer and not an asset transfer which would have triggered a government approval but the oil ministry maintains that since the PSCs for some of the Cairn other blocks has provision for prior consent, the whole deal is contingent on government approval, the source said.
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