Law ministry agrees profit petroleum share with states
This should cheer up Gujarat, which has been sulking over the "inadequate" royalty it receives from oil companies operating in the state.
India's law ministry has given the green signal for legislation to allow oil-producing states a share of profit petroleum from NELP blocks and production level payments from sales of coal bed methane. We learn a note is being drafted for approval by the cabinet commitee on economic affairs.
This year Gujarat refused to release CBMacreage within its borders until it was given a share of future profits. In September oil minister Ram Naik met law minister Arun to resolve the issue.