Poonam Nath

Boosting economy requires natural gas and oil exploration—Nagaland Assembly

Digital Desk: The Nagaland Assembly stressed the importance of exploring and extracting petroleum and natural gas resources to enhance the economy and create jobs.

JD(U) MLA Jwenga Seb raised the issue during a public-interest discussion, which was supported by LJP(RV) MLA Dr Sukhato A. Sema and RPI(A) MLA Y. Lima Onen Chang.

Seb began the debate by emphasizing the importance of tapping into the state's natural riches for future economic self-sufficiency.

He emphasized that Nagaland, which is rich in natural resources, has long been reliant on external sources, as evidenced by its low GDP, limited local industry, and dependency on other countries for energy.

"Around 90 percent of Nagaland's energy needs are met by other states, hindering its economic growth," he stated

Seb further stated, "Nagaland's energy supply is crucial for job creation, industrial growth, and infrastructure development. The state's petroleum consumption increased from 154,000 TMT in 2019 to 172 TMT in 2020, highlighting its dependence on external sources. With global energy policies towards a "Net Zero" future by 2050, Nagaland must explore its hydrocarbon resources."

MLAs Sema and Chang warn against losing relevance to emerging technologies and potential oil field drying.

BJP Minister Jacob Zhimomi advises that exploration begins in non-contested areas, particularly over 83,000 hectares in Nagaland, before moving on to disputed areas with Assam following legal discussions.

Achumbemo Kikon, an NPF MLA, stressed Changpang's oil field readiness and agreed to provide a No Objection Certificate for exploration and refinery establishment in Bhandari.

Chief Minister Neiphiu Rio acknowledged Nagaland's significant oil deposits, which began in 1973 with ONGC's discovery in Changpang and were produced beginning in 1983 but were suspended in 1994 due to non-payment of royalty and exceeding the state's permissible limits.

The Nagaland Petroleum and Natural Gas Regulations and Rules were enacted in 2012, and an expression of interest was issued in December for exploration in eleven zones.

Metropolitan Oil and Gas Private Ltd received a permit in the Wokha district, however, a Public Interest Litigation (PIL) was launched and dropped. Since 2018, the state government has aggressively engaged with the Ministry of Petroleum and Natural Gas (MoPNG) to resolve the deadlock and resume exploratory activities by constitutional rules.

A tripartite MoU between the Centre and the governments of Nagaland and Assam has been suggested for the restart of exploration activities.

Rio met with Union Minister Hardeep Singh Puri in September 2022 to discuss a state-specific policy that included fewer exploration acreages and more income shares for Nagaland residents.