Commercial Coal Mining Launches in Arunachal, Bringing New Revenue and Energy Security

Arunachal Pradesh has officially entered a new phase in resource development and regional energy production with the inauguration of its first commercial coal mine at the Namchik-Namphuk block. This milestone is a significant move not just for the state but for India’s domestic energy ambitions, promising new revenue streams, job opportunities, and a reduction in wastage through formal sector investment. The Namchik-Namphuk mine, long delayed since its initial allocation in 2003 due to administrative and legal hurdles, will now be exploited by a private leaseholder selected through a transparent auction process completed in 2022.

The mine is estimated to hold reserves of over 15 million tonnes and is forecast to generate over ₹100 crore in annual revenues for Arunachal Pradesh. Commercial mining here signifies a shift from unregulated extraction and pilferage toward a professionally supervised and environmentally regulated industry. Authorities emphasise that alongside coal, the new mining framework is also unlocking other critical minerals in Arunachal Pradesh and neighbouring Assam, with further blocks scheduled for early operationalisation to boost employment and industrial growth.

Union minister of coal and mines G Kishan Reddy officiated the commencement, highlighting both the energy security aspect and the growth potential for the region. The project is seen as key to providing a reliable energy source for the North-East, reducing import dependency, and contributing to India’s wider industrial and infrastructure expansion. As the state brings more mineral blocks to auction, Arunachal is poised to enhance its role in the national mineral supply chain, appealing to investors and generating local economic activity. The mine’s opening marks a turning point in the state’s economic landscape, moving toward formal market frameworks and away from exploitative practices of the past.