The government recently extended Vedanta’s production sharing contract (PSC) for the block for another 10 years till May 2030 but sought an additional 10per cent profit from the oil block.
The Centre on Wednesday informed theSupreme Courtthat it is not willing to reconsider the decision to increase profit share fromVedanta‘sBarmeroil and gas block in Rajasthan by 10per cent.
The government recently extended Vedanta‘s production sharing contract (PSC) for the block for another 10 years till May 2030 but sought an additional 10per cent profit from the oil block.
The Anil Agarwal-led Vedanta had moved the Supreme Court against the Delhi High Court’s March order that permitted the government to seek a higher share in the profit upon renewal of the contract. The HC had held that there cannot be an extension of the PSC unconditionally on the same terms and conditions which were prevailing 25 years ago on May 15, 1995, the effective date of the PSC.
Vedanta’s senior counselArvind P Datarand counselAnuradha Dutton Wednesday reiterated the company was ready to invest INR15,000 crore to increase production from the Barmer oil block, but an additional 10per cent levy on profit makes the project unviable.
Additional solicitor general Sanjay Jain told the court the government is in the final stages of filing its affidavit, but this 10per cent increase is justified as the government needs to get maximum revenue share and profits for its natural resources.
