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

Key highlights of the Policy

It provides clear policy framework for utilisation of following types of lands acquired under the CBA Act:

• Lands no longer suitable or economically viable for coal mining activities;
• Lands from which coal has been mined out / de-coaled and such land has been reclaimed.

The policy provides for:

• utilisation of such lands for the purpose of development and setting up of infrastructure relating to coal and energy.
• increasing investment and job creation in coal sector.
• The Government coal companies, such as Coal India Ltd. (CIL) and its subsidiaries shall remain owner of these lands acquired under the CBA Act.
• Government coal companies can deploy private capital in joint projects for coal and energy related infrastructure development activities.

Need of the policy

• The mined-out lands are prone to unauthorised encroachment and entail avoidable expenditure on security and maintenance.

Benefits of the policy

• The establishment of various coal and energy related infrastructure would lead to generation of direct and indirect employment.
• It will also help CIL in reducing its cost of operations as it will be able to set up coal related infrastructure and other projects such as solar plant on its own land by adopting different business models in partnership with private sector.
• It will make coal gasification projects viable as coal need not be transported to distant places.
• It would ensure proper utilization of land and would eliminate wastage of all-important land resource.
• It can 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.
• 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.
• It will help in realizing the goal of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence, job creation, etc.
• It will unlock land for development activities that would encourage investment in backward areas of the country.

About Coal Bearing Areas (Acquisition and Development) Act, 1957

• It was enacted to establish in the economic interest of India greater public control over the coal mining industry.
• It provides for the acquisition of land containing or likely to contain coal deposits and for matters connected therewith.

Key Provisions of the act

• The land is acquired for Government Companies only for coal mining and activities strictly incidental to mining purposes.
• The Central Government may appoint any person to be the competent authority for the purposes of this Act.
• The constitution of a tribunal for the purpose of determining the amount of compensation for any necessary damage done.
• The rights over the land vest absolutely in the Central Government.
• Prospecting and mining to be done by Central Government in conformity with the Mineral Concession Rules.