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Having failed to land SMCL coal mining contract, villagers ask back their investment in pvt. company, S/Jongkhar

August 7, 2021
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Some villagers of Martshala, Samrang, Pemathang, and Phuentshogthang in Samdrup Jongkhar, who have invested in a private venture, are now asking for their money back.

The Pemi Dejung Kuenphen Private Limited, a company in which the villagers invested, failed to land the State Mining Corporation Limited’s (SMCL) contract to work at the two coal mining sites in Samdrup Chhoeling Dungkhag.

Some 4,000 people from the four communities in the dungkhag invested over Nu 30 M in the company.

However, the company failed to meet three deadlines to procure the required number of trucks and machinery prescribed by the SMCL.

With nothing to show for, the company now plans to run quarries in the dungkhag. According to the company chairperson, Arjun Chamlagai, running quarries was the company’s plan B.

“We have submitted proposals to run quarries. If we get it, then we will run quarries for now,” said the chairperson.

However, some villagers are not in favour of running quarries.

A villager from Phuentshogthang, Pema Chopel, invested Nu 100,000 in the company, the money he saved by doing painting works. He says he is not interested in boulder business, even if it is exported to Bangladesh.

“They are not telling us anything about our money. It is public money, and we need to know. We are stressed,” said another investor, Kelzang Dorji.

While the community wishes the government to give them the coal mining contract, investors in the company are worried about their money.

“I don’t know if it is the government or our failure. We were informed we are getting the coal mining works, and we are very sad,” said Wangpo, another villager from Phuentshogthang.

While running around offices in Thimphu to get the coal mining contract, the company has spent Nu 400,000 from the total amount.

According to the company, its committee members decided to pay back the investors who have asked for their money with interest in a year or two.

The company is still working on getting coal-mining works once the current private contractor’s contract is over.

Kinley Wangchuk, Samdrup Jongkhar

Edited by Sherub Dorji

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