GUWAHATI, April 30 ? Regretting that Assam has not been getting its due share in forms of royalty on crude oil and natural gas, the all-party delegation of Assam Assembly led by Speaker Prithibi Majhi today submitted a memorandum to Union Minister of Petroleum and Natural Gas Ram Naik at New Delhi demanding fixation of royalty on crude oil on the basis of international market price. This was stated in an official release.
Stating that enhancement of royalty on crude oil on an adhoc basis has caused irreparable loss to the State Government which was already reeling under a financial crisis, the memorandum urged Naik to consult the State Government before fixing the rate of royalty. Since crude oil and natural gas are non-replenishable natural wealth of a State, it is very important that an oil-producing State like Assam whose proprietary rights in respect of all mineral resources located in the State have been recognised by Article 294 of the Constitution, receives adequate compensation in terms of royalty, if pointed out.
The delegation further urged the minister to fix the royalty on crude oil at a minimum rate of 40 per cent of the landed price of the analogous Middle East on crude oil at the nearest Indian port. On the royalty on natural gas, the delegation said it should be fixed at 20 per cent of the sale price of the gas sold to different consumers. In reply, Naik said that the Government of India is collecting a report on all-India basis which is expected to be finalised within two-and-a-half months on royalty of crude oil. On the basis of that report, if it is feasible, then some benefit may be given to Assam.