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Morung Express News
Chümoukedima | October 31
Nagaland Chief Minister, Neiphiu Rio today informed that the State Government has started discussions with the Government of India (GoI) and Assam for finalising a Memorandum of Understanding (MoU) on oil exploration and extraction in the Disputed Area Belt (DAB) along the Nagaland – Assam border.
I have started discussion with the GoI and also have taken it up with my counterpart in Assam Dr Himanta Biswa Sarma on sharing of oil royalties; he informed while addressing the 1st North-East Geology and Mining Minister Conclave, here at the Niathu Resort, Chümoukedima.
Sectors in the current discussion are A, B, C, D, E and F of the DAB. “We are hopeful that the CM Assam will favorably respond to our request for including all the sectors in the MoU,” Rio said.
“Once confidence in DAB is rebuilt, we should be able to take up exploration and extraction in the remaining part of the State, for which a bipartite MoU is being discussed with the GoI,” he added.
On his part, Assam CM Sarma, who also addressed the Conclave, noted that oil is abundant in Nagaland.
“We all believe that the kitchen is in Nagaland and Assam has got its share as oil must have flown from the former towards the latter,” attributing the ‘mother kitchen.’
I strongly hope and believed that Government of Nagaland (GoN) can take some decisions so that the precious resources can be used for the benefit of the citizen of the State and the country, he said.
The quick decision is needed, Sarma implied, as dependence on fossil oil and resources would be drastically cut down after 2035.
On border areas, he informed the Assam Government has also given its positive commitment, though admitting that it has to balance various concerns.
“But I am sure the way we have responded to the Nagaland Government, at least a beginning can now be made and the GoI will soon take a decision which should allow Nagaland for the first time to access to oil royalties after so much years of remaining in queue,” he added.
Meanwhile, CM Rio maintained that ‘Nagaland is rich but remains poor’ because of not positively exploring and extracting its rich resources.
Besides oil and natural gas, Nagaland has economically viable mineral resource of coal, limestone (cement & chemical grade), multi- metal magnetite and minor mineral resources especially sandstone distributed in all districts of the State, he said.
However, he said that several factors are hindering proactive participation of exploration and extraction agencies in the State.
Among others, he listed harsh rugged terrain and remote locations lacking sufficient connectivity, the land ownership systems and other logistics factors.
“We also have been hampered by the prolonged non-settlement of the Naga Political Issue,” he added.
Accordingly, while the State Directorate of Geology & Mining has been undertaking very few exploration activities, due to lack of modern machines and equipment, it is unable to take up more mineral blocks, Rio said.
To this end, he urged the Union Ministry to take note and provide assistance for capacity building and handholding the State Geology and Mining departments to fully exploit the new reformed regime.
“They should use accredited exploration agencies, not only in the public sector but also private sector, for scaling up exploration activities,” and the Union Ministry of Mines must consider increased funding for exploration, he said.
Rio further informed that in the area of extraction by way of auction of Mineral Blocks, the State has identified multiple blocks and is considering the amendment of relevant State Rules enacted in line with Article 371A of the Indian Constitution to provide for the new auction, regime and reforms.
He further urged for the Union Government to provide assistance for road connectivity and infrastructure development essential for extraction of minerals keeping in mind that these resources are national priority and the State Government is ‘resource constrained.’
The CM also noted that while there have had been major reforms in the mining sector of the country, the North-East States are yet to make a mark in the mineral block auction regime of the country.
“We need to address the issues because of which we are unable to sustainably exploit our mineral resources at war footing,” he added.
Rio, meanwhile, lauded Chairperson & Convener of the Conclave Dr R Lalthangliana, and Co-convener V Kashiho Sangtam, for taking the initiative to organise and host the Conclave in Nagaland.
I am sure that this conclave will open a new chapter in the history of mineral exploration and mineral development in NE India, he added, while expressing hope that deliberations at the Conclave would lead to important policy decisions, and “our mineral resources will not remain as mere potential resources but will form the backbone for economic growth and development of the region.”
