Arunachal Govt Approves Mining Lease of Namchik-Namphuk Coal Mines

The Arunachal Pradesh government has approved the mining lease of Namchik-Namphuk coal mines in Kharsang in Changlang district.

In 2023, Guwahati-based M/s Coal Pulz Pvt Ltd won the bid for a period of 30 years in an auction.

On Thursday, the lease agreement was signed between the state government and Coal Pulz at Itanagar. The agreement was signed by Coal Pulz Pvt Ltd director Naveen Singhal and Geology & Mining secretary AK Singh on behalf of the Arunachal Pradesh government.

Arunachal Pradesh Geology and Mining minister Wangki Lowang, who witnessed the signing ceremony, said Namchik-Namphuk coal mines were placed for auction along with 28 other coal mines, which was the biggest tranche of auction of commercial coal mines in November 2022.

He said mining operations will start soon and is likely to produce 2 lakh tonnes per annum as per the Approved Mine Plan, generating royalty to the state exchequer.

The start of mining operations will create job opportunities for unemployed youth, promote economic sustainability of locals and would also contribute to meet the growing energy demand, Lowang said.

The minister said the start of mining operations will drastically reduce illegal coal mining in the block.

As the mining lease area falls within the Namchik Reserve Forest, Lowang said forest clearances have been granted by the Union Ministry of Environment and Forests & Climate Change and the Department of Environment, Forests and Climate Change under Van Sanrakshan Evam Samvardhan Adhiniyam, 1980 (Forest Conservation Act ).

He also said that the state environment impact assessment authority has transferred the environment clearance of Namchik-Namphuk open cast coal mine with a rated capacity of 0.20 million tonnes per annum.

Located in the far eastern corner of Arunachal Pradesh, the Namchik-Namphuk coalfields, with nearly 15 million tonnes of coal reserves, lie in a forested zone with ecological and tribal significance.

The Namchik-Namphuk coalfield was allocated to the Arunachal Pradesh Mineral Development & Trading Corporation Ltd (APMDTCL) on October 28, 2003, by the Union Coal ministry. The total area of the coal block is 133.65 hectares, and the mining lease is being held by the corporation for a period of 20 years.

Out of the total area allocated, the operation of open-cast mining was undertaken only on 39.02 hectares between April 2007 and February 2012.

The total extraction of coal during the period was at 10,00,000 metric tonnes.

In 2012, the mining operations in the coalfield were suspended by the Centre for violation of the project's terms of reference, which are guidelines under which a project must operate, and for suspected intervention of underground armed elements.

In 2014, shortly after the Narendra Modi government came to power, the Centre said that mining in the coalfield will be resumed.

However, the project remained inactive for years, with attempts at reviving the coal block inviting scrutiny from civil society and environmental groups.

On July 1, 2019, the Pema Khandu-led government decided to resume mining activities in the coalfield.

In 2023, the coal mine was allocated to Coal Pulz, but necessary permissions for coal extraction were not granted.

On November 5 last year, the Arunachal Democratic Party had alleged illegal coal mining at Namchik-Namphuk coal mine and had sought an investigation into it.

On February 4 this year, an escrow agreement for the coal mine was signed in Delhi between the Coal Controller's Organisation under the Ministry of Coal and Coal Pulz Pvt Ltd, marking the first step towards opening of the largest coal mines to the private sector in the North East region.

On June 12 this year, the Arunachal Pradesh government sought approval for the transfer of a forest clearance to the state-run Arunachal Pradesh Mineral Development & Trading Corporation Ltd to Coal Pulz.