Cabinet gives nod to policy for use of land acquired under Coal Bearing Areas Act

In a statement, the coal ministry said that lands that are mined out or are practically unsuitable for mining are vulnerable to “unauthorised encroachment and entail avoidable expenditure on security and maintenance”.

The Union Cabinet on Wednesday gave its nod to a policy for utilisation of non-minable land for development and setting up of infrastructure relating to coal and energy. The policy, according to a statement by the coal ministry, gives a clear framework for utilisation of lands acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957 [CBA Act] that are “no longer suitable or economically viable for coal mining activities”; or those from which “coal has been mined out/de-coaled and have been reclaimed”.

The coal ministry said that the approved policy will help in realising the goal of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence, and job creation, among others.(Aijaz Rahi/AP)

The Union cabinet is chaired by Prime Minister Narendra Modi.

The statement further stated that the government coal firms such Coal India Limited (CIL) and its subsidiaries shall remain owner of these lands, and the policy only permits leasing of the land for the specified purposes.

“Government coal companies can deploy private capital in joint projects for coal and energy related infrastructure development activities,” it read.

The central company that owns the land would lease it for a specific period given under the policy, and the entities for leasing shall be “selected through a transparent, fair and competitive bid process and mechanism in order to achieve optimal value,” the statement read.

Here are the activities for which the lands will be considered:

1. To set up coal washeries
2. To set up conveyor systems
3. To establish coal handling plants
4. To construct railway sidings
5. Rehabilitation and resettlement of project affected families due to acquisition of land under the CBA Act or other land acquisition law
6. To set up thermal and renewal power projects
7. To set up or provide for coal development related infrastructure including compensatory afforestation
8. To provide right of way
9. Coal gasification and coal to chemical plants
10. To set up or provide for energy related infrastructure.

The ministry said lands that are mined out or are practically unsuitable for mining are vulnerable to “unauthorised encroachment and entail avoidable expenditure on security and maintenance”.

“Under the approved policy, establishment of various coal and energy related infrastructure, without transfer of ownership from government companies, would lead to generation of a large number of direct and indirect employment,” it added.

The ministry also said that the unlocking of non-minable land for other purposes will help CIL in cutting down its cost of operations as it will be able to establish coal related infrastructure and other projects, including solar plant, on its own by “adopting different business models in partnership with private sector.”

“The proposal to utilise land for rehabilitation purpose would ensure proper utilisation of land and would eliminate wastage of all-important land resource, avoid acquisition of fresh chunk of land for rehabilitation of project affected families, eliminate loading of additional financial burden on the projects and increase profit,” the statement read.

It added that the approved policy will help in realising the goal of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence, and job creation, among others.