UK-based Cairn Energy has raised the pitch ahead of a majority stake sale in

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its Indian subsidiary to mining major Vedanta Resources, led by Anil Aggarwal.

On Thursday, Cairn Energy chief executive Bill Gammel called on principal secretary to prime minister TKA Nair, oil minister Murli Deora and top officials in the finance ministry.

These high-profile meetings seem to be aimed at removing hurdles and ensuring possible early clearance to the deal, an official close to development told Financial Chronicle.

As per an announcement made on August 16, 2010, Vedanta Resources evinced interest to buy 40-51 per cent in Cairn India. The deal was valued in the range of $ 8.5 - 9 billion. Initially, Cairn Energy opined that there is no need to seek oil ministry’s approval to go ahead with the stake sale. However, oil ministry in consultation with law ministry came to the conclusion that it must get ‘go-ahead’ nod from government before sealing the agreement.

Currently, the proposed equity transaction is awaiting clearance from oil ministry and Sebi. “It was a courtesy call. I told him (Cairn Energy CEO) that we will take a decision on merit,” said oil secretary S Sundareshan. Cairn Energy spokesperson did not respond to an e-mail sent by Financial Chronicle seeking further details.

Oil minister Murli Deora said earlier this week that government will decide by end of this financial year whether it will allow the proposed stake sale or not.

Cairn India has 10 exploration blocks under its ambit. Out of these, seven blocks were bagged in auction under New Exploration Licensing Policy (Nelp) and three are pre-Nelp blocks. The company has sought permission for selling all of them.

Vedanta is primarily a mining company. It has no prior oil and gas experience. If the deal goes through, Vedanta will make its foray into exploration and production business. Shareholders of Vedanta approved the proposed acquisition of majority stake.