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Dimapur, October 21 (MExN): The Nagaland Pradesh Congress Committee (NPCC) has said that the present Memorandum of Understanding (MoU) between the state of Nagaland and the ONGC “is not acceptable” as the split of revenue should not be lesser than 51% for the state.
The present ratio of division of revenue between the state and the company is 22:78, it stated in a press release on Friday.
In the release, NPCC President K Therie stated that special payment of 2% valorem should be in addition to the state’s 51%. There should be a clause where by the State Government has authority to terminate or restrain, he said.
“The State may like to examine MoUs of other nations. MoU between Ministry of Petroleum and Natural Gas of Government of India and Nagaland State in regard to uniformity of royalty payment is not acceptable,” he said while underscoring that Nagaland is “not uniform with other states in view of Article 371(A).”
The MoU is a compromise. This is the reason we continue to struggle and the matter is still under negotiation, he added.
Stating that the Nagaland Petroleum and Natural Gas Rules 2012 is a compromise, Therie further stated that the Nagaland (Ownership and Transfer of Land and Its Resources) Act, 1990 gives absolute authority to Nagaland State.
According to Therie, in the matter of Article 371(A), ever since the Nagaland (Ownership and Transfer of Land and Its Resources) Act, 1990, was sent for the President’s assent, the matter has been in contest between GoI and the State.
“We have claimed the power to frame rules relating to Petroleum and natural gas belongs to Nagaland state in view of Article 371(A) IV. However, GoI claims this power as mineral resources is listed in the Union List. Our argument is that in the foregoing note of Article 371(A) clearly states: Notwithstanding anything in this Constitution, no Act of Parliament shall apply to the contents of Art 371(A) unless the Legislative Assembly of Nagaland by a resolution so decides,” and as such, the Union List does not come in the way, he added.
Further, he viewed that the Nagaland State Government should stand by the aforementioned interpretation. “In view of the stand, the notification issued under Schedule to the Oil Fields (Regulation and Development Act 1948) in regard to fees and royalties are not applicable,” he added.
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