Coal news and updates

ECL announces new policy on land acquisition, compensation

Coal India subsidiary Eastern Coalfields Limited (ECL) has announced a new policy to reform its land acquisition compensation framework, where in one-time lump sum monetary compensation or modified annuity scheme (on a pro-rata basis) will be offered to landowners in lieu of the traditional employment-based compensation model, according to a senior company official.

According to Satish Jha, CMD, ECL, this policy will mark a significant shift from the longstanding practice of offering employment to land losers in the company and is expected to benefit marginal landowners, who often face challenges to qualify for being eligible for employment on account of his/ her land holding size, etc. The lump sum payment will ensure immediate financial security, equitable benefit distribution and greater flexibility for landowners.

The new framework is designed with a forward-looking vision. It aims to empower the educated youth from project-affected families by providing them with the capital in hand and the opportunity to pursue entrepreneurship, self-employment, or higher education, rather than being absorbed into lower-level company roles.

Also, small-time traders, instead of having a binding in the form of a job at ECL, can use the financial gain to upgrade their current business. Further, those land owners who already have a source of income, like a job or business, can opt for the annuity scheme, which will open a second monthly source of income for them.

The policy will be implemented, accompanied by financial counselling, skill development support and awareness drives in project areas to help beneficiaries make informed decisions about utilizing the compensation effectively.