Namchik-Namphuk Coal Project to Power Arunachal’s Growth and Energy Future

The Namchik-Namphuk coal block in Arunachal Pradesh was formally inaugurated on Monday, ushering in the northeastern state's inaugural commercial coal mining venture. Officials described the event as a pivotal step toward enhancing energy security and economic development in the resource-rich region. The ceremony, held at Longtom village under the Kharsang sub-division in Changlang district, was led by Union Minister of Coal and Mines G. Kishan Reddy and Chief Minister Pema Khandu, who jointly performed the traditional 'Bhoomi Pujan' ritual to bless the project.

Allocated initially in 2003, the Namchik-Namphuk Central Coal Block boasts estimated reserves of 1.5 crore tonnes, positioning it as a significant asset for Arunachal's mining sector. The project encountered prolonged delays due to regulatory hurdles, environmental concerns, and logistical challenges typical of the region's rugged terrain. Its revival gained momentum in 2022 through a competitive auction process under the Coal Mines (Special Provisions) Act, 2015, which marked a shift toward commercial mining and invited private sector participation.

This auction, part of a broader national initiative to reduce coal imports and promote self-reliance, awarded the block to a consortium led by the Arunachal Pradesh Mineral Development and Finance Corporation Limited (APMD&FC) in partnership with private entities, ensuring technology-driven extraction methods.

The inauguration is projected to generate over Rs 100 crore in annual revenue for the state exchequer, primarily through royalties, taxes, and related levies. This influx is expected to bolster Arunachal's fiscal resources, which have historically relied on central transfers and limited industrial output. In a post on X, Union Minister Reddy highlighted the project's alignment with Prime Minister Narendra Modi's Empower, Act, Strengthen, and Transform (EAST) vision, stating it would "mark the beginning of a new chapter in Arunachal Pradesh’s growth story of energy security and local prosperity."

Chief Minister Khandu echoed this sentiment, noting on X that the block would "stand as a major contributor to our state’s exchequer, strengthening the foundation of Arunachal’s economy" while creating jobs and fostering regional economic activity.

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The development comes amid Arunachal's push to harness its vast mineral wealth—estimated at over 2,000 million tonnes across coal, oil, gas, and other resources—sustainably. With coal production ramping up, the state anticipates not only direct employment for hundreds of locals but also ancillary benefits like improved infrastructure and skill development programmes. Environmental safeguards, including afforestation and water management protocols mandated by the auction terms, aim to mitigate ecological impacts in this biodiversity hotspot bordering Myanmar.

As operations commence, the Namchik-Namphuk block symbolises Arunachal's integration into India's coal value chain, potentially serving as a model for other untapped reserves in the Northeast.

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