Assam loses 850 crore Oil Royalty due to Policy of Centre

By- Staff Reporter | Date- February 25, 2012

Assam lost around Rs 850 crore during the last financial year in terms of oil royalty due to the changed policy of the Central Government.

The State earned a high Rs 2020 crore as oil royalty in 2008-2009 fiscal as oil royalty till then was charged on the well head productions, based on the international price of crude oil.

However in 2009-2010 fiscal, the Government of India changed that policy in order to help the public sector oil marketing companies. Based on that change, Assam lost about 40% of the revenue.

The State is pleading for restoration of the previous policy on oil royalty, – said H S Das, Principal Secretary of the State’s Finance Department at a press conference yesterday in Guwahati.