Assam govt to recieve oil royalty of a staggering Rs 6,230 crore!

Assam govt to recieve oil royalty of a staggering Rs 6,230 crore!

GUWAHATI, Feb 21: As per reports, Assam Government will soon recieve a staggering royalty of Rs. 6230 crore that was pending from 2008-2014. Recent tweets from state minister Himanta Biswa Sarma confirmed that the pending oil royalty issue between the Centre and Government of Assam was resolved.

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Assam government had filed a petition in 2014 at Gauhati High Court regarding the royalty issue. The Ministry of Petroleum and Natural Gas has been allowing ONGC and OIL to supply crude to oil marketing companies at highly discounted rates and has asked the producers to pay royalty to the states on the basis of such subsidised prices.

The Tarun Gogoi-led Assam government claimed many times that the amount of discount has at times been as high as 90 per cent or more and this has handed the state a cumulative loss of revenue of more than Rs 10,000 crore since 2008-09. The Supreme Court, in its interim order, had directed ONGC to pay oil royalty to Gujarat at pre-discounted crude price beginning February 1, 2014.

Upstream companies like ONGC and OIL are liable to pay royalty to the states on production of crude oil at 20 per cent on well head price, subject to certain deductions. Besides, such firms are also liable to pay VAT at 5 per cent on sale of oil.

TNT News




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