As ONGC fights in Supreme Court an order to pay Rs 10,000 crore to Gujarat government in past royalty dues, a delegation led by state energy minister Saurabh Patel today met Oil Minister Dharmendra Pradhan on the issue.
The Supreme Court had in February stayed a Gujarat High Court order asking Oil and Natural Gas Corp (ONGC) to pay Rs 10,000 crore in past royalty dues to Gujarat. The PSU contends that it cannot pay the levy on revenue it hasn't earned.
With a BJP government at the Centre, Patel called on Pradhan to discuss the issue.
"The delegation discussed the issue of royalty on oil produced by ONGC in the state," an official statement said.
The statement, however, did not say what relief the Gujarat minister sought from Centre.
The Gujarat High Court had on November 30 directed ONGC to pay royalty to the state government on the gross price of crude oil. The company, as per a government of India directive, pays royalty on the net or actual price realised from refiners after allowing for fuel subsidy discounts.
The statement said Patel also discussed with Pradhan "pending issues of city gas network concerning GAIL".
"Pradhan told the delegation that their requests will be considered expeditiously, and a decision will be taken after due consideration," it added.
Separately, a delegation of Bihar BJP leaders met Pradhan to seek oil PSU investment in the state.
"The delegation was appraised of the steps being taken to augment the distributorship of LPG, kerosene and petroleum products in the state," a separate official statement said.
Pradhan, it said, informed the delegation about plans to increase the capacity of Indian Oil Corp's Barauni refinery in the state as well as reviving the Barauni fertiliser plant.
The Minister informed that eastern India is a focus area of the NDA government and 26 per cent of the state population is now covered through LPG supply, which will be expanded in the near future.
The delegation included former deputy chief minister Sushil Kumar Modi, Leader of Opposition in the Assembly Nand Kishore Yadav, Bihar unit party chief Mangal Pandey, and former home secretary and MP RK Singh.
