HC Refuses Cairn India to Export Rajasthan Crude

Delhi High Court has pronounced its judgment on a plea filed by UK-based Vedanta group company, Cairn India Ltd, looking for permission to export excess crude from its Barmer oil field in Rajasthan. Justice Manmohan, who had reserved the verdict on August 10, has pronounced the judgment, denying Cairn India to export Rajasthan Crude from Barmer.

Cairn India share price doesn’t look much affected by the denial of HC as it continues to trade on the greener range.
In this matter, the firm had argued that the export policy gave it the license to export. During the arguments, Additional Solicitor General Tushar Mehta, appearing for Ministry of Petroleum and Natural Gas, had disagreed to Cairn India's plea saying it cannot be allowed to export crude as no unrefined petroleum product is permitted to be exported.

However, the counsel defending the firm had argued that no policy has been put by the ministry before the court which states that crude cannot be exported. The government had declared that export of country's domestic crude oil cannot be permitted as it would be damaging to national interest considering the fact that nearly 85 per cent of required crude was imported. 
At 11:53 AM Cairn India share price is trading at Rs.222.30 with the rise of 0.23%.

Cairn India's counsel had argued that they were ready to sell crude within India provided they receive the benchmark price. Cairn has a production-sharing contract with the government in which the company gets 70 per cent of crude produced from Barmer, with the rest going to the government. In the contract, government or its nominee can choose up the company's share of crude and what is not picked up, and sell it to private players or exported. Conversely, after the crude is sold, the government gets 70 per cent of the profits.

It had asserted that as a consequence of selling excess crude to private domestic companies like Reliance and Essar, at rates lower than international prices, the government was losing about Rs 4.5 crore per day. The company had claimed that it had made several representations to the Directorate General of Foreign Trade for consent to export the crude but did not get any reply. It had written to IOCL to "canalize" export of the crude, but got no retort from it as well. IOCL is the canalizing agent for the export of crude.

Cairn India is among the top 500 stocks picked by Dynamic Levels for the quarter. For the details on the stock, visit Cairn India share price history page of Dynamic Levels website.