NEW DELHI: Mining magnate Anil Agarwal’s Vedanta has won an arbitration against a demand for a higher payout from its Rajasthan oil and gas fields after disallowance of Rs 9,545 crore (about $1.2 billion) in certain costs incurred, the company said.
According to a contract, companies are allowed to recover all costs incurred before splitting profit in a predetermined ratio with the government. If a certain portion of cost is disallowed, it would result in higher profits and a resultant higher share to the government. Vedanta had challenged such a demand before an arbitration tribunal.
