Union Cabinet approves Policy for use of land acquired under Coal Bearing Areas Act

The Union Cabinet on Wednesday approved the policy for use of land acquired under the Coal Bearing Areas (Acquisition and Development) Act - CBA Act, 1957. This has been done with the objectives of facilitating the utilization of lands, which are mined out or are practically unsuitable for coal mining and for increasing investment and job creation in the coal sector.

The policy provides for the utilisation of such land for the purpose of development and setting up infrastructure relating to coal and energy. The CBA Act provides for the acquisition of coal-bearing lands and their vesting in Government companies, free from any encumbrance. The approved policy provides a clear policy framework for the utilisation of those lands which are no longer suitable or economically viable for coal mining activities.

The Government coal companies, such as Coal India Ltd. 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. 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 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 Policy will help in realizing the goal of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence and job creation. The policy will unlock land for various coal and energy infrastructure development activities that would encourage investment in backward areas of the country. The utilisation of already acquired land would also prevent the fresh acquisition of land and related displacement and would promote local manufacturing and industries.