Oil explorer Cairn India said that it had received approval from its shareholders to accept conditions imposed by the government necessary to clear Vedanta Resources' deal to buy a 40% stake in the company.

The approval moves the long-delayed stake sale, one of the largest in India's energy sector, closer to conclusion. Cairn will now await a no-objection certificate from JV partner Oil and Natural Gas Corporation for concluding the deal.

Cairn India in a statement said that "Shareholders have approved through postal ballot, the ordinary resolution for acceptance of the conditions imposed by the Government of India.”

The resolution was carried with 97.3% of the shareholders votes.

India had granted conditional approval in June to London-listed miner Vedanta Resources to purchase the stake in the Indian business of British oil explorer Cairn Energy, in a deal valued at around USD 6 billion.

But conditions imposed on the sale by India include an undertaking from Cairn India that it and state-controlled ONGC will share the burden of royalty payments which are currently only paid by ONGC.

(Sourced from BS)