A group of ministers headed by finance minister Pranab Mukherjee today recommended the Cairn-Vedanta deal to the Cabinet Committee on Economic Affairs (CCEA) for its approval.
The CCEA, which is the final authority for approval in this case, is expected to take a decision in two weeks' time, petroleum minister Jaipal Reddy said, adding that the panel's decision to recommend the deal was unanimous.
Once CCEA clears the deal, Vedanta Resources can proceed with its $9.4 billion acquisition of Cairn Energy's India assets.
Vedanta Resources, led by NRI industrialist Anil Agarwal, said it has raised $1.65 billion (Rs7,425 crore) through private placement of bonds to part-finance the deal.
"This is a landmark transaction and represents largest non-banking corporate bond issuances by an Indian group," the company said in a statement.
The bonds were sold in two tranches - $750 million (Rs3,375 crore) at 6.75 per cent, due in 2016 and $900 million (Rs4,050 crore) at 8.25 per cent, due in 2021.