Petroleum minister Ram Naik is planning major changes in the policy concerning disbursement of royalty on crude oil in a manner that would primarily benefit his home state Maharashtra.
A proposal has been mooted to entitle states to the royalty accruing on the crude oil produced from offshore fields. Hitherto, the royalty on crude produced from offshore oil fields has been going only to the central government. However, royalty on crude produced from onshore fields has been going to state governments.
In the absence of any worthwhile onshore oil production, Maharashtra has not been getting much funds from this source. However, it has the largest oil producing field in the country, Bombay High, which happens to be an offshore field.
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Therefore, despite having the prized Bombay High, Mahara-shtra has not been getting the royalty that it feels should have come to it. Now that Naik is heading the petroleum ministry, political pressure has been building up to press for a changes in the policy.
Even Andhra Pradesh, which has substantial offshore oil production, has also been sounding the central government to bring in a change in its royalty payment policy so as to give at least a part of the offshore royalty to the state governments. Andhra Chief Minister Chandrababu Naidu is learnt to have discussed the matter with some leaders at the Centre.
Naik is also keen to change the policy during his tenure. Last month, during his visit to Bombay High with members of Parliament from Mumbai, he assured them that he would make efforts to ensure that the desired changes are made in the policy.
The petroleum minister is also insisting that the name of Bombay High be changed to Mumbai High. In fact, he has been insisting that in all official files, the field be called with its new name.