from Sunday Herald, 20 May 2012
Westminster secretly lobbied the Indian government to give the go-ahead to a disputed multi-billion pound deal with a leading Scottish oil company, internal emails passed to the Sunday Herald reveal.
UK government officials, briefed “over dinner” by Edinburgh-based Cairn Energy, offered to “polish” and send a letter drafted by the company. At a lunch, they also had a quiet word urging a key Indian government minister to back the deal.
The Indian government subsequently gave permission for Cairn’s £5.5 billion deal to sell off the bulk of its Indian oil business to Vedanta, an Indian mining and metals giant much criticised by human rights and environmental groups. The deal, labeled “the largest transaction ever to happen in India”, is now being challenged in the Indian Supreme Court.
The UK government has been condemned for doing Cairn’s bidding “slavishly” and “shamelessly” by campaign groups. “The political and industrial elite of India conspire with their counterparts in other countries to short-change local people and hand over national resources on a platter to multinationals,” said the leading Indian campaigner, Nityanand Jayaraman.
The controversial deal with Vedanta was at the root of the shareholder rebellion that swept through Cairn’s AGM in Edinburgh on Thursday. Plans to reward the company’s founder and chairman, Sir Bill Gammell, up to £5 million in bonuses for securing the deal were voted down two-to-one by shareholders.
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