Govt may share oil and gas offshore royalties with states
Published on Tue, Feb 02, 2010 at 22:21 | Source : Moneycontrol.com
Updated at Wed, Feb 03, 2010 at 10:11
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Govt may share oil and gas offshore royalties with states
The government is considering reforming the royalty regime with respect to the oil and gas industry and the Centre may start sharing exploration and production (E&P) offshore royalty with states
The government is considering reforming the royalty regime with respect to the oil and gas industry and the Centre may start sharing exploration and production (E&P) offshore royalty with states, CNBC-TV18 reports quoting sources.
A draft cabinet note on the move is being examined by the budget and infrastructure divisions of the Department of Economic Affairs are learnt to be examining the note and a final call on the proposal would be taken by the Finance Ministry.
If accepted, the proposal could figure in the upcoming Union Budget, sources say. The move follows states' demand for share in royalty. The central government earned Rs 9,423 crore in FY09 from petroleum royalties and is estimated to mop up Rs 8,018 crore in FY10.
As per current norms, royalties oil and gas from offshore goes to the centre while onshore royalties go to states.
