Nagaland poor despite sitting atop wealth

Nagaland sits atop an extraordinary wealth of crude oil, coal and other minerals, a natural endowment that most Indian states can only envy. Yet this abundance remains locked beneath the earth, leaving Nagaland paradoxically rich in resources but poor in economic outcomes. The state continues to depend heavily on central assistance at a time when the Union government itself can only extend support within limited means. With infrastructure needs mounting and internal revenue generation remaining negligible, Nagaland faces a stark reality: without tapping its own natural reserves, it cannot hope to build the economic foundation it urgently requires.
The logic is straightforward. Extraction of oil, gas and coal is not merely an economic option; it is the only viable path toward financial self-reliance. Harnessing these reserves would reduce the state’s dependence on external energy sources and open avenues for job creation, particularly for the youth who form a large share of Nagaland’s population.
Leaders who recognise that ownership also entails responsibility argue that the state must act before global energy transitions render fossil fuels less valuable. The window of opportunity is narrowing as the world accelerates toward renewable alternatives.
Yet Nagaland’s past attempts to exploit its resources have been mired in complications. Issues of land ownership, community rights under Article 371A, and territorial disputes with Assam have repeatedly stalled progress. While these concerns are legitimate, they have also been interpreted inconsistently, often weaponised to obstruct development projects. The state government’s current efforts to frame clear policies and negotiate agreements for renewed exploration mark an important shift, but these efforts will succeed only if the ambiguity surrounding Article 371A is addressed decisively. Misinterpretations cannot be allowed to paralyse the state’s future.
The scale of Nagaland’s potential is staggering. ONGC assessments indicate prognostic reserves of nearly 600 million metric tons of crude oil, with an extraction window of 35 to 40 years. The projected value—approximately Rs. 25,20,000 crore—represents a transformative economic opportunity. Significant deposits stretch across the Patkai ranges, Changpang, Tssori, Singphan, Geleki, Tzürangkong, Chümoukedima, Niuland and Jalukie. The Tzürangkong belt alone is believed to hold 60 to 70 million metric tons, surpassing even the well known Changpang and Tssori fields.
It must also be borne in mind that even as Nagaland appears to be bogged down by issues over oil exploration and extraction, Assam has been extracting huge quantities of crude from the Disputed Area Border(DAB) such as in Wokha district and Geleki area under Tzurangkong but which has been in occupation by Assam.
In addition, oil is being extracted through horizontal drilling from oil basins in the border with Nagaland.
Coal reserves add another layer of promise. With an estimated 492.68 million tonnes of high quality coal concentrated in Mon, Mokokchung, Wokha and Tuensang, the state possesses a resource base valued between Rs. 29,561 crore and Rs. 51,731 crore. Limestone deposits in Tuensang and Phek further expand the mineral portfolio. Taken together, Nagaland’s oil, gas and coal reserves could generate revenue of roughly Rs. 26 lakh crore or more -an amount capable of reshaping the state’s socio economic landscape for generations.
For more than a decade, this immense wealth has remained tantalisingly out of reach, trapped between constitutional protections and central regulatory frameworks. But the cost of inaction is now too high. If Nagaland continues to delay, it risks being left behind by both technological change and political indecision. The time has come for the state to move forward with clarity, confidence and consensus. Only by responsibly unlocking its natural resources can Nagaland claim its rightful place among the most developed states of the region.