The freshly endorsed policy for the utilisation of lands under the Coal Bearing Areas Act, 1957, has been recognised by the Union Cabinet. This initiative is aimed at utilising this land for the development of infrastructure associated with coal and energy. In this article, we delve into the details of the policy, its implications, and its role in supporting the Atmanirbhar Bharat mission.
Understanding the Coal Bearing Areas Act, 1957
The Coal Bearing Areas (Acquisition and Development) Act of 1957 is focused on the acquisition of lands that contain or are likely to contain coal deposits. According to this Act, the land is acquired exclusively for Government Companies for carrying out coal mining and related activities. If the land is needed for other purposes such as infrastructure, offices, or residences, it is procured under the Land Acquisition Act of 1894. It’s important to note that the mining rights and surface rights of a single land patch cannot be acquired under different Acts.
Provisions under the Proposed Policy
The new policy proposes a range of provisions aimed at judicious use of land acquired under the CBA Act. This includes lands that no longer serve any purpose for coal mining or where coal has been completely mined out and such areas have been reclaimed. According to the provisions, the government-owned companies like Coal India Ltd (CIL) will retain ownership of these lands. These lands may be leased for specific periods as dictated by the proposed policy. The chosen entities for these leases would be selected through a transparent bid process to ensure value optimisation. These lands could be used for setting up washeries, coal gasification, and coal-to-chemical plants, as well as for providing energy-related infrastructure.
The Implications of the New Policy
This policy will stimulate employment generation, through the establishment of various coal and energy-related infrastructures. These lands, which were previously prone to unauthorised encroachment, will now be utilised effectively, reducing unnecessary expenditure on security and maintenance. In addition, the policy will help government companies like CIL to reduce their operational costs as they can set up coal-related infrastructure and solar plants on their own land in collaboration with the private sector.
Contribution to Atmanirbhar Bharat Mission
The new policy aligns with the goal of Atmanirbhar Bharat (Self-Reliant India) by advocating for domestic manufacturing, reducing import dependence, and creating jobs. Additionally, it unlocks lands for development activities, encouraging investments in the more backward areas of the country. The utilisation of already-acquired land will prevent further land acquisition and related displacement while promoting local manufacturing and industries.
Coal: A Critical Resource
Coal is one of the most abundantly found fossil fuels and serves as a critical resource for various sectors such as iron and steel, and electricity generation. Coal, often referred to as “Buried Sunshine”, was formed millions of years ago when giant ferns and swamps got buried under layers of earth. High-ranking coal producers globally include China, US, Australia, Indonesia, and India, with significant coal-producing regions in India being Raniganj, Jharia, Dhanbad and Bokaro in Jharkhand.
Quizzing Your Knowledge
A question from a previous year’s Civil Services Examination asked,
“Consider the following statements:
1)Coal sector was nationalized by the Government of India under Indira Gandhi.
2)Now, coal blocks are allocated on lottery basis.
3)Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production.
Which of the statements given above is/are correct?”
The correct answer was that Coal sector was nationalised in two phases under the Indira Gandhi Government in 1972. The coal blocks are allocated through auctions and not on a lottery basis, and India still imports coal to meet shortages of domestic supply, making statement 3 incorrect.