India ONGC expects Rajasthan royalty reimbursement

MUMBAI, June 9 (Reuters) - India's state-run Oil and Natural Gas Corp (ONGC.BO) expects government will reimburse it for royalties it would have to pay beyond its 30 percent stake in an exploration block in the western state of Rajasthan.

Cairn India (CAIL.BO), a unit of Britain's Cairn Energy (CNE.L), owns the remaining 70 percent stake in the block.

ONGC is the licensee of the block, making it liable for royalties on the entire crude production from the block, which is expected to start producing soon.

"As such there is no controversy or refusal on the part of the government to agree to this legitimate demand of ONGC," the oil producer said in a statement late on Monday.

"The same has been discussed and agreed to subsequently at various levels in the administrative ministry and the government. This is being actively pursued by ONGC for an early decision," it said. (Reporting by Ami Shah; Editing by John Mair)