"Cairn India's Rajasthan asset is world class in terms of scale and cost, delivering strong and growing cash flow".

BBC: Cairn Energy agrees India sale to Vedanta

If the sale of a further 30% stake in Cairn India goes ahead, the same lower share valuation will hold.

BBC: Cairn Energy sells 10% stake in Cairn India to Vedanta

Meanwhile, Cairn India - in which Edinburgh-based Cairn has a 10% stake - has made its 26th oil discovery in the Rajasthan block.

BBC: Cairn Energy raises North Sea oil field estimate

Cairn India's CEO criticized a proposal for an 80% increase in the company's taxes, a measure that could exacerbate foreign investors' concerns about India's business environment.

WSJ: What's News

Following the sale of the 10% stake, which is due to complete by 11 July, Vedanta will hold 28% of Cairn India, while Cairn Energy will have 52%.

BBC: Cairn Energy sells 10% stake in Cairn India to Vedanta

Cairn India said it has already invested 180 billion rupees in the oil fields and plans to spend another 60 billion rupees in the next financial year starting April 1.

WSJ: Cairn India to Invest $2 Billion to Raise Output

Cairn India's investment and exploration plans will also help raise domestic crude and gas production, which is witnessing a declining trend as most of the country's producing fields are ageing.

WSJ: Cairn India to Invest $2 Billion to Raise Output

"I am delighted to announce the proposed disposal of a significant shareholding in Cairn India in line with our objective of adding and realising value for shareholders, " said Sir Bill Gammell, Cairn's chief executive.

BBC: Cairn Energy agrees India sale to Vedanta