Home Mining Cabinet Clears Coal Land For Infra

Cabinet Clears Coal Land For Infra

New Delhi: With the objectives of facilitating utilization of lands which are mined out or are practically unsuitable for coal mining and for increasing investment and job creation in coal sector, the Union Cabinet chaired by the Prime Minister Narendra Modi has approved the policy for use of land acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957 [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.

The CBA Act provides for acquisition of coal bearing lands and their vesting in Government company, free from any encumbrance.  The approved policy 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; or Lands from which coal has been mined out / de-coaled and such land has been reclaimed.

The Government coal companies, such as Coal India Ltd. (CIL) and its subsidiaries shall remain owner 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. Government coal companies can deploy private capital in joint projects for coal and energy related  infrastructure development activities.

The Government company which owns the land would lease such land for 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.