The ministry has stuck to the main pre-condition that its nod to the deal will depend upon a No Objection Certificate (NOC) from ONGC, which is a partner in Cairn India. ONGC holds a stake in eight out of 10 oil fields held by Cairn India in Rajasthan.

It is learnt that the ministry has abandoned its major pre-condition that the sum of Rs 21,802 crore paid by ONGC towards royalty and cess on behalf of Cairn India on production. from the Rajasthan oil fields should be equitably shared.

The ministry has changed its stand on equitable sharing of royalty and cess after the Law Ministry clarified that any terms and conditions to be stipulated should be mutually agreed and these cannot be unilaterally imposed.

ONGC owns a 30 per cent stake in Cairn India’s Rajasthan block, but pays royalty on the entire quantum of crude oil produced from the fields.