Lotha Hoho clouds ONGC operations in Lotha areas
Thannganing Hungyo
Dimapur | March 22
With Chief Minister Neiphiu Rio recently revealing that petroleum development would be taken up again as soon as land problems have been sorted out, the Nagaland Government can rake in heavy returns if mining operations in the oil-rich western belt of the state begins. Speaking to The Morung Express, Health and Family Welfare Minister Dr TM Lotha, who is also abreast of the developments, said the issue will be taken up with landowners. Nothing has also been finalized with the companies, he added. This applies to other precious minerals as well. Geological studies suggest that Nagaland is a storehouse of rich minerals such as those belonging to the Platinum Group Elements (metals even more expensive than gold) found in the Ophiolite belt which stretches for a few hundred kilometres. The Nagaland government’s fly in the ointment are landowners, underground organizations and activists who are averse to the idea.
The Lotha Hoho through its president Nyanbemo Lotha today said it would not allow the Oil and Natural Gas Company to extract oil from Lotha areas. On the possibility of another agency implementing the works, he said the executive council of the Hoho would be deliberating on the issue to arrive at a decision. “Lothas also want some benefits,” he said. Nyanbemo said he had earlier suggested to the council of ministers headed by Rio that the State government should acquire an equity share with any company involved in oil development. Another demand of the Lotha Hoho is that oil refineries, if established, are to be located at Nagaland. “We will discuss the other modalities with the government,” he said.
Naga Students’ Federation General Secretary said the student body still abides by its earlier statement that the terms offered to the State should be ‘acceptable, honourable and beneficial to the people.’ “The government should be transparent on the issue,” he said.
An NSCN (IM) official said a detailed analysis of the pros and cons of drilling oil should be studied before taking any decision. “All consequences have to be taken into account,” he said.
The area identified as the propeller to economic boom in terms of petroleum availability is divided into six blocks. Three companies- Oil and Natural Gas Company, a Canadian firm named Canoro and Assam Company Ltd- will be extracting the ‘honey’ from these blocks if the DAN regime gives the go ahead. All of these companies have applied for the issue of petroleum mining licence which is yet to be given by the State government. The lion’s share of four blocks will go to ONGC, a scientist and an expert on the topic said on condition of anonymity. Exploration works in the area have already been undertaken.
Under current norms, all parties willing to participate in petroleum mining have to come through an international bidding process organized by the Central government. The Nagaland government realizes its limitation with regard to technology, cost and risk of investment which include marketing factors. It also realizes the need for the participation of the Centre.
The significance of Article 371 (A) in the Constitution comes into play here. The Article clearly states that no Act of Parliament in respect of ownership and transfer of land and its resources is applicable to the State of Nagaland unless the Legislative Assembly of Nagaland by a resolution so decides. The Sarkaria Commission on Centre-State relations, recognizing the special status of Nagaland in this matter, had earlier recommended a practical approach of dialogue and discussion between the State and Centre. If mining begins, Nagaland will receive an additional royalty of 2% as compared to other states. This royalty is fixed by the Government of India. One million tons of oil was extracted from Changpang in Wokha District during the years 1981-1994 by the ONGC.
In 2003, Chief Minister Rio had said during a seminar: “Another innovative policy of the State Government is to make the State Government a partner in all petroleum development works undertaken within the Nagaland by various agencies.” This will be done by entering into a joint venture or consortium with the concerned agencies. The nodal agency for oil development in Nagaland is the Directorate of Geology and Mining, Nagaland. Geologists say extraction has to be scientifically based. They are also concerned over ecological impacts of such mining.
Morung Express News
