Rebels oppose India oil restart

By Subir Bhaumik
BBC News, Calcutta

Rebels have been fighting in Nagaland for more than 50 years

Plans by India's state-run oil company to restart operations in the insurgency-hit north-eastern state of Nagaland have hit an obstacle.

Oil and Natural Gas Corporation (ONGC) was forced out of the state more than a decade ago by Naga separatist insurgents and radical youth groups.

Last year, the rebels said they had no objection to the firm's return.

But after their latest round of talks with the Indian government, the separatists say they will oppose ONGC.

The insurgent group, National Socialist Council of Nagaland (NSCN), says it will not allow exploration of the state's mineral resources "unless and until the Indo-Naga political conflict is resolved to the satisfaction of all sections of Nagas".

Other options

The NSCN, easily the strongest separatist group in India's troubled north-east, says it is upset with the "slow progress of negotiations" with Delhi.

The talks between the two began 10 years ago.

"Unless New Delhi recognises the Nagas as a nation and acknowledges that we own what is under the ground, on the ground, and above the ground, no Indian or overseas company would be allowed to explore or exploit resources in our territory," said D Mero, a senior NSCN member.

NSCN leaders say they are not happy with the way talks are going

Mr Mero told the BBC that his organisation had viewed the question of ONGC's re-entry into Nagaland with "sympathetic consideration" a few months ago when it appeared the Indian government would work towards a settlement of the Naga problem.

"But now Delhi does not seem to be interested in a solution, it is just buying time. We have renewed our ceasefire but we are weighing other options," he said.

Two months ago, ONGC and Canada's Canoro Resources Limited had entered into an agreement for exploration, development and production activities in Nagaland.

Growing pressure

Nagaland's industry minister Khekhiho Zhimomi said the government gave the ONGC and Canoro the go-ahead as "it would benefit the indigenous people and result in overall economic development of the state".

Experts say by stopping the ONGC's re-entry, the NSCN is stepping up pressure on Delhi for a political settlement on its terms.

The ONGC started explorations in Nagaland in 1973 and began extracting crude in 1991.

The company was advised by the state government in 1994 to close shop after the NSCN and the Naga Students' Federation (NSF) threatened to attack their facilities.

Ever since the NSCN struck a truce-deal with New Delhi in 1997, Nagaland government and the ONGC have been discussing possibilities of resuming exploration and production in the State.

Last year, Nagaland's government promised adequate security to the ONGC staff.

The NSCN also promised not to attack the ONGC.