State-run explorer Oil and Natural Gas Corp expects a one-time gain of Rs 15 billion (USD 326 million) this fiscal year because of a reduction in royalty paid on Cairn India's Rajasthan blocks, its finance director said.
"In the last two years we paid a royalty of Rs 20 billion and recently the government has decided that royalty should be cost recoverable," DK Sarraf told reporters on Tuesday. In June, India granted conditional approval to Vedanta for buying a stake in Cairn India from Cairn Energy, and requiring Cairn India to share royalty payments with ONGC. ONGC and Cairn India co-own several blocks in Rajasthan.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
