BJP national secretary Tapir Gao at a press conference here said the Namchik-Namphuk coal block comprising 29 sq km was allotted to the state by the Centre to extract coal through open cast mining.
He said that the coal ministry allowed extraction of two lakh tonne of coal annually in 39 hectare.
"The Arunachal Pradesh Mineral Development and Trading Corporation Limited (APMDTCL), a state government undertaking, during 2007 authorised a private firm in Assam's Tinsukia district to extract coal from the block and sell it," Gao claimed.
The company, he alleged, violating rules extracted coal from over 55 hectare exceeding the prescribed quantity, he alleged.
He also alleged that though the coal was graded A and B class by the Jorhat-based North East Institute of Science and Technology, the company marketed it as B and C class evading royalty and road tax in Arunachal Pradesh and neighbouring Assam.
He also alleged that the company marketed the coal to North Indian states at exorbitant prices.
Gao said extraction of coal stopped in July after Alok Perti, secretary, ministry of coal in a letter to chief secretary on May 15 directed him to stop mining in Namchik-Namphuk coal block immediately. (MORE)