The Delhi high court on Friday said the Centre can demand a 10 per cent higher share in the profit derived from oil produced by Vedanta from the Barmer oilfield in Rajasthan to extend the production-sharing contract (PSC) with the company for another 10 years.

A bench of Chief Justice D.N. Patel and Justice Jyoti Singh said no embargo can be placed on the right of the government to extend the contract on terms which are at variance with the initial terms of PSC, “so long as they are in public interest and subserve the purpose of maximising revenue generation”.

The court also said that Vedanta does not have the right to demand extension of PSC on unilateral terms that suit its interest, overlooking the interest of the State, which is a trustee of the natural resources under a Constitutional mandate. “For all the aforesaid reasons, we hold that there cannot be extension of the PSC unconditionally, on the same terms and conditions which were prevailing 25 years ago, that is on May 15, 1995, the effective date,” the bench said.

The court set aside a single-judge order of May 31, 2018, directing the government to extend the tenure of the contract for 10 years, till 2030, on the same terms and conditions as existed on May 15, 1995, when the PSC was executed.