Thursday, September 11, 2025
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Coal environment fund yet to be used by govt

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SHILLONG/ NEW DELHI: Meghalaya is yet to use the environment fund realised from coal transportation despite criticisms by the Supreme Court again on Monday for “diverting” funds of the Special Purpose Vehicle Society (SPVS) meant for improvement of environment to activities like excursions, study tours outside the state.
The money collected under the Meghalaya Environment Protection and Restoration Fund (MEPRF) from coal dealers is over Rs 420 crore (Rs 420,74,77,103) and this is yet to be utilised by the government pending framing of guidelines by the National Green Tribunal.
As far as the different case related to SPVS is concerned, Chief Secretary Y Tsering was present during the hearing of the matter on Monday.
The official admitted that the money was put in a bank and some portions were spent on excursion and study tours outside the state, construction of footpaths, community halls, school buildings, public sanitation, roads, water supply projects and others.
The court was annoyed over the ‘misuse’ of funds meant for the protection of environment.
The SPVS was formed by the state government for implementing schemes related to education, health and agriculture and others in and around the mining area under operation by Lafarge-Umiam Mining Private Limited.
“The funds are for environment purposes. How can you (Meghalaya) spend the amount for some other purpose? This is clear, absolute misutilisation of money. It’s not fair at all,” a bench headed by Justice Madan B Lokur had said.
The bench expressed displeasure that environment funds were being spent by states on projects which were part of their governance. “There are certain things which you as a state is obliged to do. How can you take money from the environment fund? Construction of road is your job as a state,” the court said.
The Apex Court noted that not only Meghalaya but other states too were diverting or misusing the environment fund.
An official source said after the Supreme Court order, the state government will be cautious on dealing with the funds meant for environment protection.
The matter will come up for hearing on July 19.

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