Archive · 22 Jul 2026
Delhi HC upholds Centre's move to take Gujarat offshore block from Vedanta
The Delhi High Court has supported the Indian government's decision to take an offshore oil and gas block from Vedanta Ltd and give it to ONGC.
Vedanta had been operating the block since 1998 and applied for a 10-year extension, but the government rejected the request due to outstanding dues and non-compliance with the 2017 policy.
Vedanta argued that the government took too long to decide and that the shutdown would be difficult and unsafe, but the court sided with the government.
The block produces about 3,400 barrels of oil and 3.4 lakh standard cubic metres of gas daily.
Delhi High Court upholds Centre's decision to take Gujarat offshore block from Vedanta.
Vedanta's request for a 10-year extension of the production sharing contract was rejected due to outstanding dues and non-compliance with the 2017 policy.
Vedanta argued that the government took too long to decide and that the shutdown would be difficult and unsafe.
The block produces about 3,400 barrels of oil and 3.4 lakh standard cubic metres of gas daily.
Vedanta shares fell on the news, trading at ₹262.10 apiece as of 1103 am, India time, on the National Stock Exchange.
- Who
- Vedanta Ltd, Ministry of Petroleum and Natural Gas, Oil and Natural Gas Corporation Ltd (ONGC)
- What
- Delhi High Court upholds Centre's decision to take Gujarat offshore block from Vedanta
- When
- September 2025
- Where
- Delhi High Court, Gujarat's Cambay Basin
- Why
- Government rejected Vedanta's request for a 10-year extension of the production sharing contract due to outstanding dues and non-compliance with the 2017 policy.
Vedanta's Perspective
Government's Perspective
Extension of Production Sharing Contract
Vedanta's Perspective
Vedanta argued that it had applied for the extension well before the contract expired and that the government took several years to decide the application, allowing the company to continue operating the field.
Government's Perspective
The government argued that an extension under the 2017 policy is discretionary and that Vedanta had failed to meet the policy conditions, making the rejection of the extension request lawful and in the public interest.
Outstanding Dues and Non-Compliance
Vedanta's Perspective
Vedanta contended that the dues cited by the government were disputed and that some liabilities related to consortium partners. The company also argued that it had paid the disputed amounts under protest to avoid further controversy.
Government's Perspective
The government cited outstanding dues and non-compliance with the 2017 policy as reasons for rejecting the extension request, maintaining that Vedanta had failed to meet the policy conditions.
Operational Difficulties
Vedanta's Perspective
Vedanta argued that an abrupt shutdown of offshore oil and gas operations would be operationally difficult and unsafe.
Government's Perspective
The government directed Vedanta to immediately cease operations and hand over the block to ONGC, maintaining that the decision was in the public interest.
- Block Name
- CB-OS/2
- Location
- Gujarat's Cambay Basin
- Fields
- Lakshmi and Gauri
- Production
- 3,400 barrels of oil a day and 3.4 lakh standard cubic metres of gas a day
- Original PSC Expiry
- June 2023
- Government Decision
- September 2025
- Vedanta's Deduction
- ₹88 crore ($9.33 million) from the government's share of Profit Petroleum