The central government had claimed that the PSC with Vedanta would come under the new policy for such contracts. The dispute was opposed by the company.
The Delhi High Court on Friday, quashing the order of a single judge, directed the Center to produce oil from its Barmer oil field in Rajasthan in association with Vedanta Limited and ONGC by 2030 on their Production Sharing Contract (PSC).
A bench of Chief Justice DN Patel and Justice Jyoti Singh allowed the central government’s appeal against the single judge’s order of 31 May 2018 in favor of former judge Cairn India.
The detailed decision is yet to be uploaded on the High Court website.
The central government had claimed that the PSC with Vedanta would come under the new policy for such contracts. The dispute was opposed by the company.
The single judge held that Vedanta was entitled to an extension of its contract, which was to expire in 2020, for a further term of 10 years on similar terms and agreements when it was first entered in 1995.
While the government’s appeal was pending, from May 2020 the PSC was being extended from time to time.
The order came on May 31, 2018, on the petition of Vedanta for expansion of PSC, which the company and the Oil and Natural Gas Corporation (ONGC) have with the government to extract oil from the Barmer block in Rajasthan.
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