No crude exports from Cairn India: Gov

Cairn India cannot export crude from its Rajasthan oil field until India attains ‘self-sufficiency.’

The Dollar Business Bureau

The government, in a submission to the Delhi High Court, stated that Cairn India cannot export crude oil from its Rajasthan oil field until India attains ‘self-sufficiency.’

The Centre claimed that their stand of not allowing export of crude until India becomes self-sufficient was clear and in accordance with the national policy.

The submission by the Ministry of Petroleum and Natural Gas was made to a bench comprising Justice Manmohan,  after Cairn India the subsidiary of UK-based Vedanta group, sought permission for exports of crude.

Additional Solicitor General Tushar Mehta stated that as the petitioner was bound by a Production Sharing Contract, he is prohibited to export crude till India becomes self-sufficient.

At the time when India is dependent on imports and is trying to bridge the gap between supply and demand of hydrocarbons, the consideration to allow or disallow export of crude from the fields dotted within the country falls on the policy decision makers.

Keeping in mind the national interest, national policy and purposefulness, the government decided to prohibit exports until India is self-sufficient.

The Centre further stated that as prohibiting Cairn from exports was within the ambit of policy decision of the government, it cannot be termed as irrational or an unjustified decision.

While fixing the next hearing in the matter for May 18, the Court asked the Centre to provide a copy of the policy based on which Cairn was prohibited from its exports.

The Dollar Business Bureau - May 06, 2016 12:00 IST
 
TDB Top