Cairn Energy to begin process to end tax dispute

London-listed Cairn said it would start filing the necessary documents and work with New Delhi

The news comes after Cairn Energy said in September it was considering undertakings with the Indian government after changes were made to a retrospective tax law at the heart of the row.

Cairn Energy has entered into certain undertakings with India which would allow for the refund of taxes under a long-running, billion-dollar dispute, sending the British company’s shares almost 3% higher on Wednesday.

The news comes after the oil and gas producer said in September it was considering undertakings with the Indian government after changes were made to a retrospective tax law at the heart of the row.

London-listed Cairn said it would start filing the necessary documents and work with New Delhi to expedite the refund of roughly ₹79 billion ($1.06 billion).

“Cairn will commence the filing of the necessary documentation ... intimating the withdrawal, termination and/or discontinuance of various enforcement actions,” the company said in a statement.