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

The policy provides for utilisation of such land for the purpose of development and setting up of infrastructure relating to coal and energy.

What is the CBA Act?

• The Coal Bearing Areas (Acquisition and Development) Act, 1957 provides for the acquisition of land containing or likely to contain coal deposits and for matters connected therewith. 

• Under the provisions of this Act, the land is acquired for government companies only for coal mining and activities strictly incidental to mining purposes. 

• For other requirements, like permanent infrastructure, offices, residence, etc, the land is acquired under Land Acquisition Act, 1894. 

• Initially, the government declares its intention to do exploration/prospecting through a notification under Section 4(1). The validity period of notification under Section 4(1) is for two years, which can be extended by one more year through a separate notification.

• Subsequently on completion of prospecting, by notification under Section 7(1) of the CBA Act, the government declares its intention to acquire the land. The validity of notification under 7(1) is three years.

• On the disposal of objections, if any, filed by land owners, by the Coal Controller’s Office, the government issues notification under Section 9(1) of the CBA Act for acquiring the land. 

• Rights and titles of the land are transferred to coal PSUs/ government companies by notification under Section 11(1) of the CBA (A&D) Act, 1957.

What is the new policy?

• The approved policy provides a framework for utilisation of lands that are no longer suitable or economically viable for coal mining activities, or lands from which coal has been mined out/de-coaled and has been reclaimed.

• The government coal companies, such as Coal India Ltd (CIL) and its subsidiaries shall remain owners of these lands acquired under the CBA Act and the policy allows only leasing of the land for the specified purposes given in the policy.

• The government coal PSUs can deploy private capital in joint projects for coal and energy-related infrastructure development activities.

• The government company which owns the land would lease it for a specific period given under the policy and the entities for leasing will be selected through a transparent, fair and competitive bid process and mechanism in order to achieve optimal value.

• The lands will be considered for activities such as setting up washeries, coal gasification and coal-to-chemical plants and to set up or provide for energy related infrastructure.

What are the benefits of this new policy?

• 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 opportunities.

• This unlocking of non-minable land for other purposes will also help Coal India Limited to reduce its cost of operations and set up coal-related infrastructure and other projects such as solar plants 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 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 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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