NGT Ban on Meghalaya Coal Mining Leading to Closure of Cachar Paper Mill

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NGT Ban on Meghalaya Coal Mining Leading to Closure of Cachar Paper Mill

The ban on coal mining in Meghalaya by the National Green Tribunal (NGT) is having its affect in other related industries as it is leading to the closure of the Cachar Paper Mill in Panchgram, Assam. The mill is a unit of the Hindustan Paper Corporation and has been facing financial crisis on account non-operation of the mill due to non-availability of coal.

Minister of Heavy Industries and Public Enterprises Babul Supriyo said in the Lok Sabha yesterday that because of the coal mining ban imposed by the NGT in Meghalaya the Cachar Paper Mill has been operating erratically, leading to huge financial losses as the entire coal requirement of the mill used to come from Meghalaya. The house was also informed that coal cannot be procured from other sources as there is no broad-gauge linkage inside the mill premises, leading to shutting down of the mill every now and then for the last few years, due to shortage of raw material thereby incurring huge losses.

To overcome these challenges, a number of steps are being taken by the Central government, which has provided grant for meeting the operational costs of the mill. The NGT banned coal mining and its transportation last year after a petition was filed against the unscientific methods being carried out in the state which causes widespread pollution, especially in water bodies. The NGT had ruled that adequate precautions must be put in place to ensure safeguard of the environment before mining can restart.

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About Friends of Coal (North East)

Since its establishment in 1985, Mahalaxmi Group has consistently achieved its goals and demonstrated its ability to expand its market share, achieve excellence in the sector it operates in and realize shareholder value. In the last 10 years alone, the company has gone through a tenfold increase, expanded its reach countrywide and introduced new products and innovations. Today, we remain devoted to the same principles and aspirations that pushed our success over the decades. Values rooted into our corporate culture include zero compromise on quality, persistent value for money for our clients, a strong commitment to augment value for our investors and to achieve new heights and prosper together. We are actively working to contribute our share in environment aid by fostering plantation and greenery so that the places we are involved in experience the least negative climate impact.
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