Ending years of legal tangle, the Rio government has decided to be a partner in the ONGC venture for oil exploration in the state. It will be a ten per cent stake. The Nagaland Mineral Development Corporation (NMDC) will contribute the equity.  The centre on its part has agreed to pay an additional 2 per cent royalty. Naturally, the ONGC is relieved. Chairman Sabir Raha is happy that it will now be possible to resume exploration work  at the Champai block. It was abandoned in 1997 two years after taking up project amidst disputes over land ownership and security problems. Chief Minister Rio held detailed discussion with ONGC officials in Dimapur when both sides considered a set of proposals.  These cover issues like preference to local people in employment, royalty, and allotment of some contracts to the locals. Rio asked the Oil major to come up with their written response. Once the deal is struck formally, license for petroleum exploration will be obtained. What these modalities are going to be will be known soon. On their part, ONGC officials say that they are willing to accommodate NMDC in their exploration of a 5000 sq.km block in the state. The Block was secured under National Exploration Programme –III ONGC officials said, we are willing to accommodate NMDC in all the NELP 3 blocks except few nomination blocks. These blocks were allotted to ONGC directly by the centre.

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