Wednesday, January 15, 2025
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CAG detects royalty evasion by ONGC, OIL

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Guwahati: The Comptroller and Auditor General (CAG) of India has detected short payment of royalty on crude oil, condensate and natural gas by the public sector oil companies ONGCL and the Oil India Limited (OIL) to Assam government.

As per the CAG report for the year ended March 31 2010, ONGC has deprived Assam government of Rs 46.68 crore through short payment of royalty on crude oil and condensate. The figure involving OIL is Rs 72.40 crore in respect of crude oil and condensate and Rs 49.40 crore in respect of natural gas. The period under consideration is April 2004 to March 2009.

The CAG report mentions that both the oil companies have shown suppressed production figures that led to shot payment of royalty to Assam government. These oil companies having producing hydrocarbon fields/wells in Assam have to pay royalty on the annual volume of production from these fields.

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