Meghalaya’s Extractive Economy

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Recent reports of the Justice (retired) BP Katakey one man committee that the state government has failed to recover Rs 5.30 crore from 15 coke oven plants and over Rs 1.71 crore from M/S Sakambari Ferro Alloy Pvt Ltd is a worn out narrative. Firstly, the state government is slack about recovering the fines imposed on these companies that have been penalised for polluting the environment and their continued operation of coke units despite the ban by the National Green Tribunal. In its 33rd interim report, the BP Katakey Committee said it has been apprised by the government-constituted Coal Audit Committee (CAC) about the completion of audit of source of coal utilised by the coke oven plants, ferro alloy plants and cement thermal power plants in East and West Jaintia Hills, West Khasi Hills and South West Khasi Hills districts.
The CAC found 15 defaulting units which purchased 36,353 MT coal from illegal sources for which a penalty of Rs 5.30 crore was to be recovered and the recovery process has only just begun. As regards the ferro alloy plants, the CAC apprised that the audit of source of coal used by M/S Sakambari Ferro Alloy Pvt Ltd is completed and a fine of Rs 1.71 crore is levelled on the company towards royalty, cess on royalty, GST and MEPRF and the recovery process for the amount fined has started. From the BP Katakey report what emerges is an indictment of the use of locally dug coal despite the NGT ban since 2014. It points to the complete lack of monitoring of the illegal activities that carry on unabated in the coal mines of East Jaintia Hills, West Khasi Hills and Garo Hills. The reported disappearance of 4000 MT tonnes of coal recently and the flippant answer given by a minister of the government that it was washed away by rainwater shows that illegality is allowed to thrive in the state. This happens because profit has become more important than people and the planet. This extractive capitalism thrives on draining natural resources at the cost of causing harm to communities and ecosystems. This is a model that prioritizes short-term gains for the few at the expense of long-term sustainability for the many. Extractive capitalism is an economic model based on the aggressive extraction of natural resources to generate maximum profit. It prioritizes wealth accumulation for a small elite, at the expense of environmental health, social equity, and long-term sustainability. The system thrives on short-term gains by disregarding the irreversible damage it causes to ecosystems and communities.
At its very core, extractive capitalism exploits both nature and people to feed a profit-driven machine. This machine is working relentlessly and is managed by a mafia that believes it has the right to pollute because when caught it can get away by paying off the authorities. The question is whether money can compensate for environmental destruction. An extractive economy thrives under a political system that favours crony capitalists over the environment and people. The pattern under which these capitalists operate is to take as much as possible, give back as little as necessary. This model is destined to destroy our natural habitat. That a government can allow such depravity is itself a grave crime!

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