NEW DELHI, Nov 19: British resources giant Vedanta said on Friday it has lined up $6 billion in financing to fund the company's controversial proposed purchase of most of Cairn Energy's India unit.

Earlier this week, Scotland-based Cairn Energy said it was seeking the necessary Indian government approvals for the transaction and that it expected to complete the process by the first quarter of next year.

London-listed Vedanta Resources, whose assets already include aluminium, copper, iron ore and zinc mines, announced in August plans to acquire between 51 and 60 per cent of Cairn India for $8.5 billion to 9.6 billion.

The financing “provides the group with funding flexibility,” said Vedanta chairman Anil Agarwal in a statement, calling the $6 billion in commitments from international banks “a testament to the strength of the Vedanta story”.

The proposed acquisition has run into trouble in India.

Cairn Energy ruffled feathers by announcing its plans to sell the stake in its Indian unit before informing the Indian government or its partner, Indian state-run Oil and Gas Corp (ONGC).

The deal requires the government's nod because it has oil production-sharing contracts with Cairn India, which holds interests in 10 oil and gas blocks in the country and has tie-ups with ONGC, the energy-hungry country's largest oil producer.

Indian-born billionaire Agarwal has said he wants to create an “Indian natural resources champion”.—AFP