(PTI)
The government has bailed out state-owned oil producers ONGC and Oil India from a potential liability of about Rs 22,000 crore in royalty dues to states like Gujarat and Assam. The central government will pay two state-owned firms’ outstanding liabilities of Rs 14,698 crore directly to the state governments, who will not insist on levy of Rs 7,223 crore interest on payments that were due from April 2008. “This is a huge upside for us. The central government will pay to the states directly the royalty they were claiming from us. Thereupon the states would not insist upon interest payment,” ONGC Chairman and Manging Director Dinesh K Sarraf said. Oil and Natural Gas Corp (ONGC) had to pay Gujarat Rs 8,392 crore and Assam Rs 1,404 crore in royalties for the period between April 1, 2008 and January 2014. On this amount, it faced an interest liability of Rs 2,868 crore.
