The Supreme Court of India on Friday asked the Centre to reconsider raising its share in Vedanta’s revenue from the Barmer oil and gas block by 10 per cent.
Indian conglomerate Vedanta’s Barmer oil and gas block in western India would be made unviable by a 10 per cent rise in the government’s share in the project’s revenue, a company lawyer told the country’s top court on Friday.
The Supreme Court was hearing a dispute between Vedanta and the federal government related to an extension of the production-sharing contract for the Barmer asset in the state of Rajasthan.
“The levy of additional 10 per cent makes the project unviable,” senior advocate Arvind Datar, appearing for Vedanta, told the court.
The government has said it is entitled to increase its revenue share from the block by 10 per cent, having recently extended the contract for the Barmer asset by 10 years.
