Britain's Cairn Energy said on Wednesday it had entered into certain undertakings with the Indian government which would allow for the refund of taxes under a long-running billion dollar dispute with the South Asian country.

       The oil and gas producer had said in September it was considering entering into statutory undertakings with the Indian government after changes to a retrospective tax law which is at the heart of the row.

       "Subject to certain conditions, the Taxation Amendment Act nullifies the tax assessment originally levied against Cairn in January 2016 and orders the refund of Rs 7,900 crore (approximately $ 1.06bn), which was collected from Cairn in respect of that assessment. In order to satisfy those conditions, Cairn will commence the filing of the necessary documentation under rule 11UF(3) of the Indian Income Tax Rules 1962(Rules) intimating the withdrawal, termination and/or discontinuance of various enforcement actions," Cairn said in a statement.

       Cairn said it is working collaboratively with the Government of India towards expediting the refund within the process of the Tax Amendment Act Rules. The previously announced special dividend is expected to be paid by early 2022, the company further said.

       (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)