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The change in policy guidelines is significant as it will pave the way for faster operationalisation of coal blocks auctioned for commercial coal mining. The new amendment ensures that the ownership of such parcels of land rests with coal PSUs while they also get revenue.

Policy on use of land by coal PSUs

The ministry said that it received approval from the Union Cabinet on July 18 to amend the policy guidelines. The original policy guidelines covered land acquired by coal PSUs only under the Coal Bearing Areas (Acquisition & Development) Act, 1957, known as the CBA Act. With the new amendment, the purview of the policy guidelines extend beyond land acquired under the CBA Act to cover land whose ownership is vested with coal PSUs through Coking Coal Mines (Nationalisation) Act, 1972 (or CCMN Act), Coal Mines (Nationalisation) Act, 1973 (or CMN Act) and Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act). The amendments also apply to land purchased or acquired by coal PSUs through any other means and which overlap with coal mines/blocks auctioned or about to be auctioned under the Coal Mines (Special Provisions) Act, 2015 (CMSP Act) or the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).

Coal PSUs can lease mining, surface rights to commercial coal miners

According to the amended policy guidelines, mining and surface rights in such parcels of land (where there is an overlap) can be leased by coal PSUs only to successful bidders who have secured the auctioned coal block. For surface rights, coal PSUs can grant a lease or a sub-lease on their own terms and conditions to the commercial coal miner. “Surface leases so granted by the government companies shall be long-term leases, ie, for up to 50 years,” the amended guidelines said.

For land whose ownership is vested in coal PSUs through CCMN Act or CMN Act, the government company can grant a sub-mining lease to the successful bidder or surrender the mining lease to the state government for granting it afresh to the entity that has acquired the block. For lands covered under CBA Act, a mining lease may be executed between the coal PSU and the successful commercial coal mine bidder. In case of lands covered under RFCTLARR Act or acquired by coal PSUs through any other means, the mining lease will be granted by the state government.