Nagaland is losing approx Rs.1825 cr annualy in oil royalty
Observing that Nagaland was still heavily dependent on Central assistance and yet unable to meet its development requirements 58 years after it came into existence, State’s lone Lok Sabha representative Tokheho Yepthomi cautioned that unless the state government and the people were "flexible on the issue of Article 371 (A)", Nagas would always remain dependent on the Central government for barest of sustenance.
The MP regretted that even with a 90:10 ratio funding pattern (90% Central share and 10% State share), the State was unable to meet its economic requirements.
Calling for taking cognizance of the merits and demerits of Article 371 (A), which has been both a boon and bane for development activities in the State, he said energy sector was perhaps the largest contributor to deficit in State budget. He pointed out that Nagaland had numerous avenues to harness energy for generation of electricity, but the hindrances created due to land ownership issues had cost the State dearly.
And due to the hurdles created in the past vis-à-vis oil exploration under the cover of Article 371 (A), Yepthomi claimed thatNagaland was losing approximately Rs 5 crore daily or Rs 1,825 crore annually for being unable to harness its energy resources, even as Assam had collected Rs 17,995.83 crore in the last 10 years (2011-2021) from the energy sector. (See table 1)
He recalled that Oil and Natural Gas Corporation (ONGC) was given permission in 1973 for survey and investigation, adding that the State government received oil royalty of Rs 33.3 crore from 1981 to 1994.
But even as drilling sites at Changpang, Hozukhe on the bank of Zubza river, Khopanala and Toshezu were ready for extraction, Yepthomi regretted that the infrastructure, including laying of pipelines, created by ONGC were destroyed and stolen on the ground that oil and natural gas resources should be utilised after sovereignty was achieved amid calls for enforcing Article 371 (A).
“But while we stopped extraction of oil, ONGC continued drilling in Assam and completed 39 oil fields of which 27 are operational,” he added. (See table 2)
He pointed out that Geleki, Khoraghat, Nambar, Kasomarigaon, Suphyam, Dayalpur, Barholla and Mekrang oil fields were along the Assam-Nagaland border, but the royalty for these were being collected only by Assam. Of the listed 39 oilfields, he said Changlang and Khasam were along Assam-Arunachal Pradesh border and Churachanpur along Assam-Manipur border. He also claimed that barring three oilfields, the remaining 36 were near Assam-Nagaland border.
Even in Nagaland, he said ONGC continued to explore oil at Pihekhu, Tokishe and Nikihe under Niuland sub-division, adding drilling had already commenced in Karbi Anglong areas that were parallel to Dhansripar sub-division and Peren district.
According to the MP, Government of India (GoI) had spent a colossal $111.9 billion (Rs 82,47,08,59,50,000 crore)in 2018-19 and $101.4 billion (Rs 74,72,40,93,60,000 crore) in 2019-20 on oil imports.
He said India imported 84% of its fuel requirements, making it the third largest importer of oil in the world. Hence, he said GoI was vigorously engaging in domestic oil exploration and extraction.
Mentioning that God has blessed Nagaland with abundant natural resources, he lamented that “we are choosing to forego such blessings”.
“It is 58 years since our State was created and it has only proven that Nagaland State cannot bring oil companies on its own to operate oil fields nor sell a drop of oil as long as we are a part of the Indian Union,” he observed.
Pointing out that India along with rest of the world was moving away from fossil fuels to clean renewable energy, he warned that Nagaland’s oil resources would count for nothing when clean renewable energy would get cheaper than fossil fuels in the very near future.