Kohima: Deputy Chief Minister TR Zeliang addressed the Nagaland Legislative Assembly regarding a significant drop in coal revenue, attributing the decline to various factors affecting the coal industry in the state.
Zeliang highlighted challenges faced by Nagaland’s coal sector, including difficulties in fetching competitive prices due to high sulphur and ash content despite the coal’s high calorific value.
He noted fluctuations in royalty collection over the years, particularly in 2022-23 and 2023-2024.
During 2022-23, increased demand for coal in the domestic market, including Nagaland’s coal, led to higher prices and boosted royalty collection to Rs 9,91,82,730.00.
However, the subsequent year saw a drop in domestic coal demand, attributed partly to adequate coal stock from previous seasons and external factors such as Bangladesh’s recent elections and the availability of cheaper coal imports from Indonesia and the USA. As a result, coal revenue decreased to Rs. 3,41,42,645.00.
MLA Achumbemo Kikon raised environmental and health concerns from coal mining activities, highlighting the common practice of leaving coal mines barren after extraction.
Similarly, Kikon emphasised the need for proper mining procedures and suggested halting mining activities until compliance with due procedures is ensured.
Minister Temjen Imna Along proposed several measures to address the challenges faced by the coal industry.
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He recommended establishing authorised depots in mining areas, issuing mining licenses to financially capable individuals, and ensuring prepaid GST collection for coal exports to streamline revenue generation.
Along also stressed the importance of capacity building to enhance coal extraction processes.
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