The Centre has agreed to pay Rs 6,320 crore to the Assam government as crude oil royalty as part of an out-of-court settlement after eight years of protracted legal battle. The amount will be paid by the Central government to the Assam government over a period of three financial years commencing 2016-17. While in 2016-17, the central government will pay Rs 948 crore, in 2017-18 it will pay Rs 2,844 crore and in 2018-19 it will shell out Rs 2,528 crore. This is in addition to the Rs 1,450 crore already received. Oil India Limited produces 3.2 million tonnes crude oil in Assam annually, while Oil and Natural Gas Corporation Limited produces 1.1 million tonnes crude oil every year in the state. OIL and ONGC have been paying royalty to the Central and state governments in terms of statutory provisions.