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The Centre today agreed to pay ₹6,320 crore to the Assam government as crude oil royalty as part of an out-of-court settlement after eight years of protracted legal battle.
The amount will be paid over a period of three financial years, beginning 2016-17.
CM thanks Centre
Assam Chief Minister Sarbananda Sonowal thanked Prime Minister Narendra Modi, Finance Minister Arun Jaitley and Petroleum Minister Dharmendra Pradhan for the “proactive and bold steps” which led to the settlement.
While in 2016-17, the central government will pay ₹948 crore, in 2017-18 it will pay ₹2,844 crore and in 2018-19 it will pay ₹2,528 crore. This is in addition to the ₹1,450 crore already received.
Annual production
The Oil India Ltd produces 3.2 million tonnes crude oil in Assam annually, while Oil and Natural Gas Corporation Ltd produces 1.1 million tonnes crude oil every year in the state.
The OIL and the ONGC have been paying royalty to the central and the state governments in terms of statutory provisions of oilfields (Regulations and Development) Act 1948 and Petroleum and Natural Gas Rules, 1959.
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