New Delhi, Feb. 5: The hike in crude oil royalty announced on Tuesday will bring a windfall gain of about Rs 360 crore for Assam, followed by Gujarat.
Petroleum minister Ram Naik told newspersons today that Assam will get Rs 180 crore as arrears for crude royalty calculated for the period April 1, 1998, to March 31, 2002. Gujarat will receive Rs 220 crore as accumulated arrears for this period.
However, with the sharp increase in international prices of crude this year the additional amount due to these two states as royalty payment will be around Rs 400 crore in the current financial year.
The minister said that the royalty will now be paid on the well-head price derived from the international market price of crude. While the royalty will vary according to the quality of crude in each state, the current provisional amount of Rs 850 per tonne would increase to about Rs 1,210 per tonne on an average, Naik said.
The additional outgo of Rs 436 crore to states on account of crude royalty for the current fiscal has been calculated at a crude oil price of $ 22 per barrel.
Since the royalty will now be paid on the value of crude, if international prices of crude go up further then the well-head price linked to it would also increase. As a result this payment could even be higher.