Policy for use of Land Acquired under CBA Act

Why in news?

• The Union Cabinet recently approved a policy for use of lands, which are mined out or are practically unsuitable for mining, to develop and set up infrastructure relating to coal and energy.
• The policy entails the use of land acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957.

What is the CBA Act, 1957?

• 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.
• Mining rights and surface rights of a single patch of land may not be acquired under different Acts.

Provisions of the Proposed Policy:

• Provides framework for utilisation of land:
  • The 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.
• Coal India will remain owners of these lands:
  • State-run companies such as Coal India and its subsidiaries will remain owners of these lands acquired under the CBA Act and the policy will only allow leasing of the land for the specified purposes.
  • These companies can deploy private capital in joint projects for coal and energy related infrastructure development activities.
  • The entities for leasing shall 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.

PRACTICE QUESTION:

With reference to ‘Coal Bearing Areas (Acquisition & Development) Act, 1957’, consider the following statements:

1. It provides for the acquisition of land containing or likely to contain coal deposits

2. State-run companies such as Coal India and its subsidiaries are owners of the lands acquired under the CBA Act

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer