Kern Energy offers મા 500 million interest waiver to India

India has to pay Rs 12,600 crore including interest

If India returns the principal, we will waive the interest and invest the amount in the project as suggested by the Government of India: Kern

New Delhi: Britain's Cairn Energy Limited has offered the Indian government a waiver of 50 500 million in interest if it repays the principal.

The company is ready to invest the amount in the oil and gas renewable energy project suggested by the government. The Government of India has to pay Rs 12,600 crore, including interest, as per the International Court of Justice's December, 2020 calculation.

The Scottish company had invested in the oil and gas sector in India in 1994 and in 2006-07 announced that it had found large chunks of oil in Rajasthan.

Earlier, India had filed an appeal against the judgment of the Hague-based Arbitration Court in the Cairn Energy case. This is the second time in the last three months that the Indian government has refused to accept the verdict.

An appeal has been lodged against a three-member tribunal comprising the Permanent Court of Arbitration in The Hague, the Netherlands. The court also ruled that the Rs 10,247 crore tax levied by the Indian government on Cairn Energy was unjustified and ordered the Indian government to refund the amount, amount of shares sold, dividend forfeiture and tax refund.

It may be recalled that the Government of India lost to Cairn Energy in International Arbitration in December 2020 in respect of retrospective tax.

In this case of tax dispute, the Arbitration Court had ordered the Government of India to pay interest and penalty in addition to 1. 1.2 billion. As a result, the amount has risen to 4 1.4 billion. However, the Indian government has not paid the amount to Cairn Energy and has filed an appeal against the ruling.

Cairn Energy, on the other hand, has offered to invest the amount in the project suggested by the Government of India by waiving the interest amount. The tribunal said in its judgment that the Indian government had violated the trade agreement with Britain. The court said the Rs 10,247 crore tax levied by the Indian government on Cairn Energy was unfair.