Cabinet approves policy for using land acquired under Coal Bearing Areas Act

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved a policy for the use of land acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957 with the goals of facilitating the utilisation of lands that have been mined out or are practically unsuitable for coal mining, as well as increasing investment and job creation in the coal sector. 

The policy calls for the use of such land for the development and construction of coal and energy-related infrastructure.

The CBA Act allows for the acquisition of coal-bearing lands and their free and clear vesting in a government business. The approved policy establishes a clear policy framework for utilising the following types of lands acquired under the CBA Act: lands that are no longer suitable or economically feasible for coal mining activities; or lands that have been recovered after coal has been mined out or de-coaled.

The Government  coal companies, such as Coal India Ltd. (CIL) and its subsidiaries, would continue to own the lands acquired under the CBA Act, and the policy only authorises leasing for the objectives mentioned in the policy. Private cash can be deployed by government coal firms in collaborative projects for coal and energy-related infrastructure development.

The government corporation that owns the land would lease it for the duration specified in the policy, and the leasing entities would be chosen through a transparent, fair, and competitive bid process and mechanism to produce the best possible value. The lands will be considered for various activities to set up Coal Washeries;to set up Conveyor Systems; to establish Coal to construct Railway Sidings; Rehabilitation and Resettlement of Project Affected Families due to acquisition of land under the CBA Act or other land acquisition law; Rehabilitation and Resettlement of Project Affected Families due to acquisition of land under the CBA Act or other land acquisition law; and as such.

Lands that have been mined out or are practically unsuited for coal mining are vulnerable to unwanted intrusion, resulting in unnecessary security and maintenance costs. The approved policy would result in the creation of a large number of direct and indirect jobs by establishing diverse coal and energy-related infrastructure without transferring control from government firms.

This repurposing of non-minable land will also assist CIL in lowering its operating costs because it will be able to build coal-related infrastructure and other projects such as a solar plant on its own site using new business models in collaboration with the private sector. It will make coal gasification projects feasible because coal will not have to be delivered to far locations.

The proposal to utilise land for rehabilitation purposes would ensure proper utilization of land and would eliminate wastage of all-important land resources, avoid acquisition of fresh chunks of land for rehabilitation of Project Affected Families, eliminate loading of additional financial burden on the projects and increase profit. It will also address the demand of the displaced families as they always prefer to stay as close as possible to their original residential places. It will help in obtaining local support for coal projects and also providing land to the State Government for afforestation in lieu of forest land diverted to coal mining.

 The Policy will help in realising the goal of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence, job creation, etc. The policy will unlock land for various coal and energy infrastructure development activities that would encourage investment in backward areas of the country.  Utilisation of already acquired land would also prevent fresh acquisition of land and related displacement and would promote local manufacturing and industries.

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