Amid 13 lakh-tonne coal shortage row, Conrad Sangma calls for reinvestment of mining revenue

Amid scrutiny over the reported disappearance of more than 13 lakh tonnes of coal from various depots in Meghalaya, Chief Minister Conrad K Sangma on Wednesday stressed the need to reinvest mining revenue in sustainable livelihoods, community infrastructure and alternative economic activities.

The remarks come days after a committee appointed by the Meghalaya High Court sought a detailed inquiry into a shortage of 13,02,456.184 metric tonnes of inventoried coal and called for responsibility to be fixed for its disappearance.

The committee, headed by retired Justice B P Katakey, noted a discrepancy between the 32,56,715 tonnes of coal recorded as available and the 19,54,258.816 tonnes found during physical verification by deputy commissioners. It also noted that the Supreme Court had held the state government to be the receiver and custodian of the coal.

Addressing a programme marking 10 years of the District Mineral Foundation (DMF) at the State Convention Centre in Shillong, Sangma said mining remained a vital pillar of Meghalaya's economy, but the revenue generated from the sector needed to be channelled into initiatives that could sustain livelihoods for future generations.

“Mining is a very important part of our economy. But it is important for the state to be able to reinvest the revenue and the money we get from it, in the form of things like DMF and other activities,” he said.

Rs 181 crore mobilised through DMF

Sangma said the DMF had mobilised Rs 181 crore in Meghalaya over the past decade, with 923 projects sanctioned and 542 completed.

The funds have supported classrooms, healthcare facilities, drinking water projects, footbridges connecting remote villages and environmental restoration initiatives, including water conservation dams and tree plantation in quarry areas.

The chief minister called for greater investment in livelihood generation and income-generating infrastructure, particularly in mining-affected areas.

Citing examples of alternative economic activities, he referred to an eco-tourism park and a value-added bee products unit at Nengmandalgre, silkworm rearing and a weaving centre in Ri Bhoi, and a district emporium promoting locally produced goods.
Such initiatives, he said, could help create employment, encourage entrepreneurship and reduce dependence on mining.

Sangma also highlighted the potential of food processing, tourism and value addition, saying that processing agricultural produce locally could improve returns for farmers and help establish sustainable enterprises.

CM urges districts to utilise funds effectively

Referring to the Meghalayan Age Pavilion, inaugurated in Shillong on Tuesday, Sangma said it showcased products made by local entrepreneurs, including weavers, fruit wine producers and ice cream makers.

“Every single shop out there that has been opened is an entrepreneur of Meghalaya. Every single product that is being sold there is a product that is made in Meghalaya by our people,” he said.

The chief minister urged deputy commissioners to identify innovative and productive ways to utilise DMF funds, particularly for projects that generate livelihoods and sustainable income. He said the state government, departments and the Chief Minister's Secretariat would support districts through the convergence of resources wherever necessary.

He also asked districts where the DMF had not been constituted or was not functioning despite mining activity to take steps to operationalise it. District administrations were urged to ensure the timely completion of sanctioned projects and effective utilisation of available funds.

Government weighs options for small miners

On the broader mining sector, Sangma said mining continued to support thousands of families and remained a major source of employment in Meghalaya.

He said the government was pursuing a gradual transition towards safer, scientific and environmentally responsible mining, taking into account the state's geological conditions and community land ownership system.

Discussions with the Centre, including the Union Coal Minister, had led to positive developments towards reconsidering minimum area requirements for mining, potentially allowing smaller miners to participate in scientific mining, he said.

The government was also examining ways to address regulatory challenges faced by small-scale miners extracting stone, boulders, sand and other minerals, while balancing environmental safeguards with employment generation and the economic interests of local communities.