The multi-billion dollar Cairn-Vedanta deal is unlikely to see much movement till the end of April as senior leaders in the government are busy with state polls. The companies have revised the deadline to seal the deal to May 20 from April 15. The group of ministers (GoM) that will decide on fate of the deal is yet to be constituted.

“Prime minister Manmohan Singh is out of the country and finance minister Pranab Mukherjee who will head the GOM is busy with state assembly polls. The other members of the GoM are yet to be decided. Till now, there is no further development,” said a government official privy to the developments.

Singh is on an official visit to China and Kazakhstan. He is expected to arrive in Delhi by Sunday late evening. Mukherjee is busy with state polls in West Bengal where his son Abhijit Mukherjee is contesting Nalhati assembly seat in Birbhum district.

The state election fever will continue till second week of May. Counting of votes is due on May 13. The decision makers at centre are busy campaigning in West Bengal for assembly polls. “They (Cairn and Vedanta) do not have any choice,” said a cabinet minister, requesting anonymity, when asked about delay in proposed deal.

The cabinet committee on economic affairs (CCEA) on April 6 decided to constitute a GoM that will look into the pending application of UK-based Cairn Energy to sell its stake in its Indian subsidiary. The GoM will look into two options as proposed by oil minister S Jaipal Reddy—first is to give conditional clearance. The other is to give clearance, while leaving the legal recourse open to both the parties. Other than oil minister, corporate affairs minister Murli Deora and law minister Veerappa Moily are expected to sit in the panel.

In August 2010, Edinburg-based Cairn Energy proposed to sell 51 per cent – 60 per cent in Cairn India to Anil Agarwal-promoted Vedanta Resources. The deal is pegged at $8.5 billion to $9.6 billion.