Pact between Nagaland and ONGC on petroleum not acceptable: Congress

Dimapur: The Nagaland Pradesh Congress Committee (NPCC) said the MoU between the Nagaland state and the ONGC on petroleum and natural gas is not acceptable as the agreement split the revenue between the state and the company in the ratio of 22:78 respectively.

NPCC president K Therie said the split should be not less than 51% for the state. Besides, he said, a special payment of 2% valorem should be in addition to the state’s 51% share.

According to him, there should be a clause whereby the state government has the “authority to terminate or restrain”.

He suggested that the state government may examine the MoUs of other nations.

The NPCC chief also said the MoU between the Union ministry of petroleum and natural gas and Nagaland state in regard to uniformity of royalty payment is not acceptable. 

“We are not uniform with other states in view of Article 371(A),” he said and called the MoU a “compromise”.

“This is the reason we continue to struggle and the matter is still under negotiation,” he stated.

He sought to point out that the Nagaland Ownership and Transfer of Land and Its Resources Act 1990 gives absolute authority to Nagaland state.

On Article 371(A), he said 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 contested by the Centre and the state.

“We have claimed the power to frame rules relating to petroleum and natural gas that belongs to Nagaland state in view of Article 371(A)IV,” he said.

However, the Centre claimed this power as mineral resources are listed in the Union List, he added.

Therie said the state argued that in the foregoing note of Article 371(A), it is clearly stated “Notwithstanding anything in this Constitution, no Act of Parliament shall apply to the contents of Article 371(A) unless the Legislative Assembly of Nagaland by a resolution so decides. As such, the Union List does not come in the way”.

Saying that the Nagaland government should stand by the above interpretation, Therie said the notification issued under Schedule to the Oil Fields (Regulation and Development Act 1948) in regard to fees and royalties is not applicable.