Gujarat demands royalty linked to crude prices

Vol 5, PW 10 (04 Jul 01) News in Brief

Royalty rates on a barrel of locally produced crude are set to increase from the present rate of Rs800 ($17.02) per tonne following pressure from Gujarat.

This month Gujarat chief minister Keshubhai Patel wrote to oil minister Ram Naik demanding royalty rates be linked to the international price of crude. "Royalty payments constitute a significant portion of our revenues and fixation at substantially lower levels (than the international price) has been creating difficulty with our plan financing," writes Patel.

An 'Intra Ministerial Committee' is expected to submit a report on royalty payments by 31st July after receiving "comments" from states.

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