CCEA gives permission to Differential Royalty Payment to states on crude oil production [ Current Affairs ]
About CCEA: CCEA stands for Cabinet Committee on Economic Affairs. It is one of the vertical committee of the cabinet constituted by the Government of India. CCEA directs and coordinates all policies and activities in the economic field including foreign investment that require policy decisions at highest levels.
- It also control agriculture product’s prices fixations and reviewing progress of activities related to rural development including those concerning small and marginal farmers.
- It controls price of industrial raw materials and products, industrial licensing policies.
About Payment of differential royalty:
- In the permission to states on crude oil production, payment of differential royalty is the difference between the rates of Payment as per supplies of Production Sharing Contracts (PSCs) and the reported rate of Payment on crude oil production.
About permission of Differential Royalty Payment:
- CCEA has approved the proposal for payment of differential royalty in respect of 28 discovered fields to the respective State Governments concerned.
- The royalty payment will be through budgetary allocation from the year 2015 - 2016 and onwards.
- The estimated expenditure for the year 2015 - 2016 based on this payment mechanism has been estimated at 56 crore rupees of which 30 crore rupees for Arunachal Pradesh and 26 crore rupees for Gujarat.
- Published on: August 31, 2015