Essar-Rosneft deal hits IB, home ministry hurdle

Wednesday 28th June 2017 06:08 EDT
 
 

The $13 billion deal struck between Essar Oil and Rosneft-led consortium has been red-flagged by India's the home ministry and Intelligence Bureau. Sources from inside the government said that the Home Ministry and IB have objected to the Vadinar port being a part of the transaction.

Hailed as India's largest foreign direct investment deal signed last year in the presence of Prime Minister Narendra Modi and Russian President Vladimir Putin, in Goa at the sidelines of the BRICS Summit, concerns have been raised of the Kremlin-owned Rosneft holding control of Essar's Vadinar port. The objections are said to have been based on the port's proximity to the border with Pakistan, and also of 3-4 defence installations being in the vicinity. Addressing questions, an Essar spokesperson said, “All requisite approvals from the Government of India for the Essar Oil transaction to proceed are available. Query pertaining to seeking ministry of home's approval for the port has nothing to do with the present Essar-Rosneft-TrafiguraUCP deal. Hope this clarifies the matter adequately.”

It was later informed that the Prime Minister's Office will take the final call on whether the Vadinar Port should be a part of the transaction. “No decision has been taken as yet on security clearance to the venture. The committee of officers is still to meet to discuss the case. There may be some intelligence inputs, the details of which will be put up before committee for consideration,” a senior home ministry official said.


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