Centre cannot reject extension application on unstated rules, Vedanta tells Delhi HC
Appealing a single-judge order, the mining major argues the government cannot ignore its 2017 Extension Policy to seek higher revenue from the Cambay Basin block without formally amending the rules.
Vedanta Limited, a prominent mining company, has challenged the Delhi High Court's rejection of its application for a 10-year extension in the CB-OS/2 block located in the Cambay Basin. The court upheld the Central government's September 2025 decision to deny the extension, citing unspecified reasons. Vedanta's legal representatives, Mukul Rohatgi and Jayant Mehta, argue that the rejection lacks transparency and fairness.
They contend that the government's policy for contract extensions should be formally updated to reflect any changes, rather than being arbitrarily altered. Rohatgi emphasized that Vedanta has invested $10 billion and 28 years of operations in India's oil and gas sector, and its experience should be considered during the evaluation process.
The company also pointed out that other blocks have recently received similar extensions under the 2017 policy, which accounts for revenue generation through a 10% markup. Vedanta argues that revenue maximization cannot be used as a separate criterion for rejecting its application. The case will be heard again on August 18.
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