Arbitration case: Cairn Energy offers to invest $1.2 bn if India relents

As the tax battle intensifies between India and energy giant Cairn, with New Delhi challenging the $1.2-billion award at The Hague, the UK oil major has reached out to the Indian government through informal channels with a fresh proposal to settle the dispute, though with dim prospects of success.

Cairn Energy has offered to invest the entire award money in India, which includes the principal amount of $1.2 billion and interest of $500 million if the government agrees to enforce the award.

However, the government is unlikely to accede to the proposal, arguing that it would mean accepting the verdict, against which it has appealed.