Nagaland Chief Minister Neiphiu Rio, emphasising on the significance of oil and natural gas exploration for the development of Nagaland, said that the state had objected the granting of licence in the Disturbed Area Belt (DAB) areas citing them as reserved forests by Assam.
However, on the insistence of the state, the Ministry of Home Affairs and Ministry of Petroleum and Natural Gas, Assam has agreed to share royalties in DAB areas A,B,C on a 50:50 basis for licenses already granted by Assam.
The leader of the house said this on the floor of the house while delivering his concluding remarks on the Budget for the year 2023-24, on Tuesday here at Nagaland Legislative Assembly, Kohima.
“We have also demanded that this dispensation should cover D, E, and F sectors of DAB as well. In case it is not possible to agree to this arrangement, we have agreed to keep the royalty amounting in ESCROW accounts till such time the matter is amicably resolved”, Rio stated.
He maintained that the state has taken a stand to first resolve the matter in DAB areas as Nagaland is already losing a huge amount of revenue and informed that a Memorandum of Understanding (MoU) is to be signed between the state and central government whereby the rights of the State under Article 371(A) are adequately protected.
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