Cabinet approves policy for use of land acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957

What is the News?

The Union Cabinet has approved the policy for use of land acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957 [CBA Act]. 

What is the purpose of the Coal Bearing Areas Act,1957?

The Act provides for the acquisition of coal-bearing lands and their vesting in a government company, free from any encumbrance. 

What are the policy changes proposed under the Coal Bearing Areas Act,1957?

The objective of the Policy: To facilitate the utilization of lands that are mined out or are practically unsuitable for coal mining and for increasing investment and job creation in the coal sector.

Key Provisions of the Policy

Framework for Utilisation of Land: The policy provides a clear policy framework for the utilisation of the following types of lands acquired under the CBA Act: 1) Lands no longer suitable or economically viable for coal mining activities or 2) Lands from which coal has been mined out / de-coaled and such land has been reclaimed.

Owners of these Lands: State-run companies such as Coal India Ltd.(CIL) and its subsidiaries will remain owners of these lands acquired under the CBA Act.

Leasing of Land: The Government company which owns the land would lease such land for specific purposes only. The entities for leasing shall be selected through a transparent, fair and competitive bid process and mechanism in order to achieve optimal value.

Specific purposes for which Land can be leased out: The lands will be considered for activities such as:  

– To set up Coal Washeries or Conveyor Systems or Coal Handling Plants or thermal and renewable power projects;

– To set up coal development-related infrastructure, including compensatory afforestation;

– To construct Railway Sidings and to provide Right of Way;

– For Rehabilitation and Resettlement of Project Affected Families due to acquisition of land under the CBA Act or other land acquisition law;

– To set up Coal gasification and coal to chemical plants; and

– To set up or provide for energy-related infrastructure.

What are the expected benefits of this policy?

Generates Employment: The establishment of various coal and energy-related infrastructure, without transfer of ownership from Government companies, would lead to the generation of a large number of direct and indirect employment.

Reduce Cost of Operations: The unlocking of non-minable land for other purposes will help CIL in reducing its cost of operations, as it will be able to set up coal-related infrastructure and other projects in partnership with the private sector.  

Help Obtain Local Support: The proposal to utilize the land for rehabilitation purposes will help in obtaining local support for coal projects. Further, it also provides land to the State Government for afforestation in lieu of forest land diverted to coal mining.

Encourage Domestic Manufacturing: The Policy will help in realizing the goal of Atmanirbhar Bharat by encouraging domestic manufacturing and reducing import dependence.

Source: This post is based on the article “Cabinet approves policy for use of land acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957” published in PIB on 13th April 2022.