Delay of oil & coal extraction

Nagaland holds a profound hope that promises a transformative future if prognostic oil reserves estimated at 600 million metric tons of crude oil with a crucial window of 35 to 40 years as assessed by the Oil and Natural Gas Corporation Limited (ONGC)are extracted. The projected value of oil is at an astronomical Rs.25,20,000 crore (approx), which is Nagaland’s black gold that can transform the economic scenario for decades to come. Oil reserves in Nagaland occur in the Patkai ranges, Changpang, Tssori (Wokha), Singphan (Mon), Geleki, Tzürangkong (Mokokchung), Chümoukedima, Niuland and Jalukie (Peren) among others. A vast estimated crude reserve of between 60 to 70 million metric tons are in Tzurangkong under Tuli sub-division, bordering Wamaken and Amguri along the Geleki reserved forest. The quantity of crude oil in the belt is projected to be more than that at Chanpang and Tssori. On April 21, 2023, Nagaland chief minister Neiphiu Rio disclosed that both he and Assam chief minister Dr Himanta Biswa Sarma had, in principle, decided to go for an MoU on exploration in the disputed areas so that oil can be extracted and royalties can be shared between the neighbouring states. This comes against the backdrop of the statement made in July 2022, by then Union Minister of State for Petroleum and Natural Gas, Rameswar Teli who told Parliament that the ONGC was operating 8 oil fields in the DAB between Assam and Nagaland. On March 7, 2025 at the 6th Session of the 14th NLA, Dr Neiphiu Rio reaffirmed his government’s commitment to exploration and extraction of oil in Nagaland. This is a welcome move that finally clears the desk for oil exploration and exploitation. This means that the Nagaland Petroleum & Natural Gas Rules 2012 framed for oil exploration and exploitation is not an issue. The NPNG Rules 2012 reached a roadblock when the then UPA-II cited Entry 54 of the Union List (List I) in the Seventh Schedule of the Constitution of India where, Parliament has pre-eminence to frame laws for the regulation and development of oil and minerals. This supremacy is rooted in Article 246(1), which gives Parliament the exclusive power to legislate on matters listed in the Union List. With the Central government now showing willingness to support Nagaland’s oil exploration, it has also decided to grant a special royalty rate of 2% above the applicable rate for onshore areas, in recognition of the special provisions under Article 371-A of the Constitution. This concession underscores the government’s commitment to addressing Nagaland’s unique challenges and ensuring equitable benefits. Nagaland also has substantial deposits of high quality coal estimated at 492.68 million tonnes, with major deposits in Mon, Mokokchung, Wokha, and Tuensang districts, primarily sub-bituminous to lignite in nature. Nagaland also has significant limestone deposits, particularly in the Tuensang and Phek districts, with notable reserves at Nimi, Wazeho, and Satuza, and the Mimi-Pyakatsu block. Calculated on approximate value the coal reserves could fall within a broad range of approximately Rs.295.61 billion(Rs.29,561 crore rupees) to Rs.517.31 billion(Rs.51,731 crore). This vast potential wealth has tantalized the state’s ambitions for over a decade, but its exploitation remains trapped in a crucible where constitutional protection meets central government mandate. Now, that the decks have been cleared, there is no reason as to why the state should delay any further and forge a path of pragmatic prosperity.