GUWAHATI: The Union Petroleum Ministry on June 26 released Rs. 773 crore of oil royalty, the last tranche of oil royalty arrears due to Assam.
Assam State Finance Minister, Himanta Biswa Sarma in a Tweet said, “Commitment made & fulfilled! Thanks to Hon PM @narendramodi FM @nsitharaman Petro Min @dpradhanbjp for releasing Rs. 773 cr, last tranche of oil royalty arrears due to Assam. Now we've received entire arrears of Rs. 6306 cr over last 3 FY which was denied by then PM Dr Manmohan Singh.”
Commitment made & fulfilled!Thanks to Hon PM @narendramodi FM @nsitharaman Petro Min @dpradhanbjp for releasing ₹773 cr, last tranche of oil royalty arrears due to Assam. Now we've received entire arrears of ₹6306 cr over last 3 FY which was denied by then PM Dr Manmohan Singh.
— Himanta Biswa Sarma (@himantabiswa) June 26, 2019
According to the Oil Field Act, OIL and ONGC are required to pay 20% of royalty on the price of crude oil it extracts from inland oil blocks to the respective State governments.
It should be mentioned that during the period from April 2008 to June 2016, the Assam government incurred a loss of crude oil royalty of approximately Rs 7,755.88 crore as oil producing companies paid the royalty to the oil-producing States like Assam and Gujarat at discounted prices.
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