Centre penned down agreements with three miners of Meghalaya to begin scientific coal mining in at least two districts, said the Chief Minister of Meghalaya Conrad K Sangma on Thursday.
National Green Tribunal (NGT) banned the unscientific "rat-hole mining" and transportation of coal in the Himalayan state a decade ago. The Supreme Court later allowed transportation of already mined coal left in the open.
The chief minister said that signing the escrow agreements is a "significant stride" as his government is assisting coal miners to come out of the NGT ban.
"Three escrow agreements were signed between the Controller of Coal, Government of India, and the project proponents for mining sites at Pyndengshalang in West Khasi Hills district, and Saryngkham and Lumiakhi Wahsarang in East Jaintia Hills district," Sangma stated.
What is an escrow agreement?
An escrow agreement is a legal contract among entities, which outlines the terms and conditions under which an asset is held by a third party (escrow agent) until certain conditions are met. The escrow agent is a neutral party responsible for holding the asset and distributing it to the appropriate party once the agreement conditions are met.
In these pacts signed on Wednesday, Coal India Limited is the third party.
The CM said, "These agreements are a crucial step toward initiating mining operations. In addition to these three, 12 more applications are in the advanced stages of approval. We continue to actively pursue them with the support of the project proponents and the dedicated efforts of the Department of Mining and Geology."
Terming the signing of pacts as a notable achievement of the National People’s Party-led Meghalaya Democratic Alliance administration, Sangma said, "As promised, our government has fulfilled its commitment to securing approval for scientific coal mining operations in the state by working closely with the Ministry of Coal."
The rat-hole mining was banned by the NGT in 2014. Such mining involves digging narrow tunnels, usually 3-4 feet high, for workers to enter and extract coal. The horizontal tunnels are often termed “rat holes”, as each just about fits one person. A number of people died in accidents while working in these illegal mines in the past 10 years.
According to government reports, the coal mining industry was among the biggest revenue earners for the state, generating about Rs 700 crore annually, prior to its ban in 2014.
The Meghalaya High Court had subsequently appointed a one-man committee headed by former high court judge Brojendra Prasad Katakey and is tasked to recommend measures to be taken by all concerned to the verdicts of the NGT and the Supreme Court on the matter.
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