Question : ROYALTY ON CRUDE OIL



(a) whether the Government have any plan to increase the royalty on crude oil for the State producing crude oil; and

(b) if so, the details thereof?

Answer given by the minister


THE MINISTER OF PETROLEUM AND NATURAL GAS (SHRI RAM NAIK)

(a) & (b) : Government have been enhancing the rate of royalty on crude oil on provisional basis from time to time, pending regular revision of the rate of royalty. The rate of royalty was provisionally increased from Rs. 578/MT to Rs. 750/MT on 1.12.1999 with effect from June, 1999. The provisional rate was further enhanced from Rs. 750/MT to Rs. 800/MT on 2.5.2000 with effect from 1.1.2000. A Committee has been constituted on 26.4.2000 for evolving a new Scheme of royalty effective from 1.4.1998. On receipt of the Report of the Committee, the Government would examine its recommendations and take appropriate views in the matter.