Nampchik coal mine goes live: Northeast’s new mining era begins in Arunachal Pradesh

In a major development for Arunachal Pradesh’s mining sector, Coal Pulze Pvt Limited, led by promoter Naveen Kumar Singhal, has successfully secured the Nampchik Coal Mine in Kharsang. 

The 30-year mining lease, commencing in 2025, marks the entry of a new player in the Northeast coal sector and is projected to generate substantial revenue and local employment.

Under the agreement, the state government will receive a 65.5% revenue share, translating into an estimated Rs 4,500 crore over the lease period. Additionally, a 4% waste price will be levied, further boosting government revenue. 

The coal extracted will primarily be G5 grade, suitable not only for power generation but also for small-scale industries, ensuring value addition in the local economy.

Coal mining in this region was previously halted in 2012 by the Coal Control Organisation (CCO). 

The Nampchik block auction attracted six companies, with Coal Pulze Pvt Ltd emerging victorious. The company has already conducted public consultations and engaged with local communities to facilitate smooth operations.

The approved mining plan allows extraction of 0.2 million tonnes per annum, although the company has indicated that the permissible limit may be increased over time, potentially allowing the total reserve of approximately 14–15 million tonnes to be mined within 15 years, well ahead of the lease period’s 30-year maximum. The company has invested significantly in the project, including Rs 57 crore towards performance guarantees and security deposits.

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Environmental and regulatory compliance has been a priority. Coal Pulze Pvt Ltd has deposited Rs 12.5 crore with the Arunachal Pradesh Forest Department for Net Present Value (NPV) and Compensatory Afforestation (CA). 

An additional Rs 29 crore was paid under the CAMPA initiative in 2023. Afforestation plans cover 180 hectares of degraded forest land in Seppa, East Kameng district. All environmental clearances, including transfers of existing Environment Clearance (EC), have been obtained, and the company reports having secured 23 approvals across 657 pages of documentation. DGMS inspections ensure strict adherence to mining safety regulations.

Director Atiqur Rehman Barbhuiya highlighted that the company plans more than Rs 200 crore in overall investment. A strong focus will be placed on local engagement, with skilled youths from the region to be employed in mining-related activities. The company emphasized adherence to the Mines Act and coal mine regulations, ensuring that all workmen and machinery operations are compliant with DGMS inspections.

Regarding financial commitments, Coal Pulze Pvt Ltd has already paid Rs 27 crore as an advanced premium, reflecting 65.5% of the total revenue share, and Rs Rs 2.59 crore for compensatory afforestation over 180 hectares. 

Forest clearance has been obtained for 128.97 hectares of the total 133.65 hectares reserved for mining, with additional permissions being sought for remaining areas.

Promoter Naveen Kumar Singhal and company officials emphasized that the project will not only focus on coal extraction but also on value addition, with surrounding industries expected to contribute approximately Rs 200 crore to the local economy. This initiative is projected to create significant employment opportunities and bolster transportation and ancillary sectors in the region.

Coal Pulze Pvt Ltd, the only fast and legally compliant operator in the area with all valid permissions, has pledged to operate responsibly, ensuring maximum benefit to the state, local communities, and the broader Northeast region.