It seems that the issue of ‘royalty’ on crude oil will rule assembly session beginning Tuesday.
It seems that the issue of ‘royalty’ on crude oil will rule assembly session beginning Tuesday. The ruling BJP has put up an official resolution in the state assembly assailing the Congress-led UPA coalition at the centre for “injustice” meted out to Gujarat on royalty on crude oil and gas produced in the state. Royalty should be paid on market prices and not after giving compensation to oil companies, says the BJP sources.
The ten-day session will conclude on February 27 and the resolution will most probably be taken up for discussion on the last day.
The BJP’s move is politically well calculated as the short session of state assembly to pass vote-on- account would be the last one to take on the UPA in view of present Lok Sabha’s term expiring and fresh general election to be declared soon.
The debate on the issue would generate heat in the House which hitherto has been summoned mainly for the business related with budget for 2009-2010 and some bills, including that of the SEZs, amendment in the Tenancy Act, and creation of Educational Innovation Commission.
In a retaliatory move, the opposition Congress has also submitted a resolution demanding that that the state government announce a package to help small industries facing a crisis because of recession in the market. It will be moved in the House by senior Congress legislator Arjun Modhwadia.
The BJP resolution to be moved by minister of state for industries, Saurabh Patel, under provisions of 120 rule of the assembly would put the Congress side in an awkward position as the UPA government has reversed the old policy on crude oil royalty which was paid on the basis of the well-head criterion finalised by the earlier NDA regime. As a result, the state received sizable amount from the Centre as royalty on the crude oil and gas produced in Gujarat.
But the union government changed its policy for royalty in April last year, and as a result the oil companies would be paid their share and the state would receive its due only after compensation was given to the oil companies. The state government has already registered its strong protest to the union government towards new policy demanding implementation of the old policy as the revised policy would adversely affect the state’s revenue from the royalty on crude oil and gas.
According to estimates of the state government, the Centre has sanctioned a meagre Rs429 crore against Rs1,964 crore which should have been paid to Gujarat. The losses would be of Rs1,500 crore only in few months. Gujarat is one of the few states producing a huge stock of crude oil and gas in the country.
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