NGT ban hits state exchequer hard

SHILLONG: Since the ban on coal mining in Meghalaya imposed by the National Green Tribunal (NGT) ruling, the role of the 15 check gates maintained by the Mining and Geology Department of the State Government has been reversed.

The check gates are meant to keep a vigil on the amount of coal mined in the State and collect the revenue due to the State exchequer by way of royalties on coal. “”At the moment, the main function of these check gates is to keep a vigil to ensure that there are no trucks laden with coal plying on the road,” official sources said here.

The NGT ruling has not only robbed a large number of people of their livelihood but is also bleeding the State white. For, the ban is causing an enormous loss to the State exchequer.

Sources said the State had been earning around Rs 400 crore of revenue annually through royalties paid on the value of mined coal. During the peak season, the earning of the Government from coal mining used to shoot up to Rs 50 crore a month and even during the lean season the monthly earning had been around Rs 20 crore.

“The revenue collection through royalties from coal has totally stopped after the Government passed an order on May 9 to stop transportation of coal from the mining sites,” sources said. It had been more than 15 days since the Government passed this order.

Sources said that the concerned departments had been asked by the State Government to submit a detail report on the actual loss to the State exchequer in terms of revenue collected from coal following the NGT ruling. “We are currently working out the details. We are expected to complete this exercise in the next few days and then submit the full report to the Government.”

The highest contributor to the coffers of the State in terms of royalties from coal was Jaintia Hills followed by Garo Hills and then West Khasi Hills, sources said.

Taking cognizance of an application of the All Dimasa Students’ Union and Dima Hasao District Committee of Assam, stating that illegal rat hole mining in Jaintia Hills was polluting the Kopili River in neighbouring Assam, the NGT passed an order on April 17 directing the State Government to ensure that rat hole mining/ illegal mining and illegal transport of coal were stopped ‘forthwith.’

NGT had observed in its order that only coal mafias had been benefitting from such mining activities. But, for the cash-strapped Government, the order had come at a difficult time when it was busy meeting the dues of Central sector power utilities, sources said. For states rich in coal, royalty on coal usually provided an important source of revenue for the respective state governments, they pointed out.