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Thursday, February 2, 2023

State’s profit share on petroleum exploration should be 50:50 share basis: RPP

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Nagaland Government is obligated to be transparent and accountable on this issue,’ says the RPP

DIMAPUR, Nov 5 (NNN): The Rising People’s Party (RPP), the newest political party based in Nagaland, has advocated on Friday that the share of the State with regard to profit should be on the 50: 50 share basis.

With regard to petroleum exploration, the RPP believes that two issues are at hand. One is about the exploration and revenue sharing in the DAB and the exploration and extraction within Nagaland proper.

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As per news reports, according to the RPP, Nagaland has received an indication from the Assam Government to equally divide the proceedings of petroleum exploration and extraction between the two States along a few sectors of the Disputed Area Belt (DAB).

The RPP said that the Nagaland Government is obligated to be transparent and accountable on this issue. The RPP then posed some queries to the State Government. It asked as to how much is Assam Government’s revenue from oil extraction in sector A, B, C, D, E and F falling along DAB till date. “Since Assam has been extracting petroleum along the DAB for several decades, will Nagaland get the accumulated share of revenue due to it?” it also asked.

“Is the proposed MoU on the 50: 50 share basis and will Nagaland still go ahead with the MoU if Assam insists that the sharing formula is to be restricted to sectors A, B, and C only?” the RPP further questioned.

With regard to exploration within the proper Nagaland, oil and mineral resources fall under the ambit of Article 371 A, said the RPP. However, as per the Nagaland Petroleum & Natural Gas Regulations and Rules 2012, the RPP said it is bewildered by the ‘myopic conclusion’ in fixing the State’s share of profit at a meager 16% minimum for petroleum and 12% minimum for natural gas. The RPP further said the party is of the firm conclusion that the State’s share in this case should not be less than 50%. “If the State Government goes ahead with the 16% profit formula, then the RPP can only conclude that the present dispensation has an ulterior motive,” it added.

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The RPP then said that until this percentage is rectified, the Government of the day should not hastily sign any memorandums and agreements with any entity.

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The Hills Timeshttps://www.thehillstimes.in/
The Hills Times, a largely circulated English daily published from Diphu and printed in Guwahati, having vast readership in hills districts of Assam, and neighbouring Nagaland, Meghalaya, Arunachal Pradesh and Manipur.
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