The Delhi High Court on Wednesday orally dismissed Vedanta Ltd.'s petition challenging the Centre's decision to deny a 10-year extension of its production sharing contract (PSC) for the Cambay Basin offshore OS/2 oil and gas block in Gujarat. Justice Purushaindra Kumar Yadav pronounced the order in open court. The court's detailed judgment is awaited.
Vedanta had challenged the Ministry of Petroleum and Natural Gas' September 2025 decision refusing to extend the PSC under the government's 2017 Pre-NELP contract extension policy. The company contended that it satisfied the eligibility criteria under the policy and sought a direction for extension of the contract and the associated petroleum mining lease until 2033.
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The dispute arose after the PSC expired on June 29, 2023. While the Centre granted interim extensions as it examined Vedanta's request, it subsequently rejected the application, directed the company to cease petroleum operations and decided that the block would be handed over to state-run Oil and Natural Gas Corporation (ONGC).
Vedanta moved the Delhi High Court, arguing that the government's decision was arbitrary and contrary to the 2017 policy governing extensions of Pre-NELP contracts. Earlier this year, the High Court had ordered status quo, preventing ONGC from taking over the block pending adjudication of the dispute.
With Wednesday's oral order, the High Court has refused to interfere with the Centre's decision, clearing the way for the government's stand to prevail. The detailed judgment setting out the court's reasons is awaited.
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