NEW DELHI (Commodity Online) : Vedanta Resources' proposed deal to buy 40-51 % in Cairn Energy Plc's Indian arm appears to be lifting.

The oil ministry has asked the Scottish explorer to seek approval for all the 10 acreages in India involved in the transaction, NRI metals tycoon Anil Agarwal's company has raised a $6-billion syndicated loan to fund the $9.6-billion acquisition.

The latest news from the Oil Ministry has provided enough indication that Vedanta Resources’ deal may put on hold which gives way for other investors to come forward with the deal.

Cairn had sought approval only for seven acreages out of the ten. The most important Crown Jewel of Barmer fields, which had been given to develop before the government started the bidding round is not in the seven.

The new process may delay further approvals. It is supposed that Government may ask for changes in the royalty-sharing regime in Barmer fields which may relax ONGC or by seeking operator ship for ONGC once Vedanta takes over Cairn India citing lack of experience of Vedanta Resources.

Meanwhile Vedanta has today announced it’s financing association with banks consisting of Barclays Capital, Citi, Credit Suisse, Goldman Sachs, JP Morgan, Morgan Stanley, Royal Bank of Scotland and Standard Chartered for over a $6 billion deal.

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