Oil exploration and extraction: NSF questions government on royalty sharing

Kohima: Admitting that the ‘illegal extraction’ by the neighbouring state is leading to a massive loss in revenue, the federation urged the government of Nagaland to take a step back and not take any hasty decision that jeopardises the future of the Nagas.

BY | Wednesday, 29 March, 2023

The Naga Students Federation (NSF) has questioned the rationale of the government sharing oil royalty with any other states for resources extracted in the areas administered by the Nagaland government.

NSF expressed surprise that the government is intending to start oil exploration and extraction in the disturbed area belt (DAB) once a tripartite Memorandum of Understanding (MoU) is signed with the government of India and Assam.

The reason for this development was the substantial loss in revenue due to non-extraction of oil even as the neighbouring state, Assam, continues to exploit resources along the inter-state border, a press release stated.

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Learning that the government is in a hurry to sign the tripartite MoU conceding to the proposal of Assam regarding equal sharing of proceeds on oil and gas from A,B,C of the DAB and that proceeds from D,E and F be kept in an escrow account till settlement between the two states, NSF cautioned the government not to resort to steps which compromises the inalienable rights of the Naga people over its land and resources.

Admitting that the ‘illegal extraction’ by the neighbouring state is leading to a massive loss in revenue, the federation urged the government of Nagaland to take a step back and not take any hasty decision that jeopardises the future of the Nagas.

NSF also demanded the government to place the proposed tripartite agreement in public domain for deliberation, consultations and suggestions.

Related story: Nagaland Budget 2023-24: CM Rio on oil and natural gas exploration

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