The government is expecting to settle $1.2 billion in tax litigation with UK-cased Cairn Energy PLC amicably outside court.
Cairn Energy released a statement that said, “a number of proposals with the aim of finding a swift resolution that could be mutually acceptable to the Government of India and the interests of Cairn’s shareholders.” The industry and the government have held three rounds of talks over the weekend. The statement also said, “Assuming such a resolution can be achieved, we look forward to being able to move on further opportunities to invest in India which continues to import the majority of energy sources it consumes.”
They also said that the Indian finance ministry officials they spoke to were “notwithstanding without prejudice” and “cordial and constructive.” They stated that they are hopeful that there will be an acceptable solution so that the matter isn’t delayed further.