A team of top executives from UK-based Cairn Energy Plc and Vedanta Resources assembled on Sunday for the first oil ministry meeting to break the long time stand still project over conditioning for clearing their $9.6 billion M&A deal.

S Sundareshan, oil secretary said that although Vedanta’s bid fails to close but the overall discussions were extremely constructive and there is hope that the matter would be resolved soon.

There is a hope to find out a positive solution to acquire control of Cairn's Indian arm that operates the Barmer oilfields and several other acreages.

Both the parties Cairn and Vedanta stick to their explanations and spend around 90 minutes of the meeting on two of the 11 conditions and could be deal breakers. The two conditions are royalty regime for Barmer fields and accepting government's verdict as final in future disputes.

They reserved to their conditions that changes in the royalty regime will hurt Cairn India's future profitability and will be challenged by minority shareholders.

While state-run ONGC demand for an, equitable royalty regime as it pays 100% royalty on having 30% equity due to policy irregularity.

The ministry made it clear that Vedanta issue will not go further till Cairn resolves the royalty issue.