Tuesday, 27 March 2012

Cairn India Slams Country's Business Environment

NEW DELHI—The chief executive of India's largest private oil producer slammed the government for proposing an 80% increase in the company's taxes, a measure that could stoke foreign investors' concerns about India's business environment.Rahul Dhir, CEO of Cairn India Ltd., which is majority-owned by the U.K.'s Vedanta Resources VED.LN +0.23% PLC, said the proposed increase in the "cess" the company pays on each ton of oil it produces would cost it $2.5 billion by 2020 and could discourage it from pursuing a $6 billion expansion plan.
"This came out of nowhere," Mr. Dhir said in an interview Tuesday. "The government has been desperately trying to attract investment in the oil-and-gas sector and it hasn't worked. This will just create further disincentives to invest." 
Read the full story here. 

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