Power cos demand amendment in Coal Bearings Act

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Mumbai, Aug 25 : Several private and public sector power companies have made a strong pitch to extend the scope of Coal Bearings Act 1957 to include captive coal block to expedite development of coal blocks rapidly. These companies have argued that overall process of land acquisition will be hastened and will obviate the need for award of lease from state governments. This will provide a level playing field to captive coal mining industry vis-a-vis government companies and speed up augmentation of coal production to meet country’s demand.

Despite the largest power producer NTPC, after facing issues in acquisition in its allotted coal blocks, has approached the coal ministry for covering the coal blocks in the ambit with Coal Bearings Act, 1957 for speedy land acquisition. NTPC faced several roadblocks in land acquisition for its captive coal mine in Jharkhand. Similar plea has been made by Lanco Infratech, which has argued that “as there is little flexibility in choice of land for mine development the mining industry needs special legal provisions for land acquisition and cannot be equated with other industries in this respect”.

Private companies have submitted that the government coal companies have been acquiring the coal block land under the Coal Bearing Areas Act (CBA) 1957—a special provision under the Central government empowerment.

Informed sources told FE only a handful companies have commenced production or are likely to start in the current year against the coal ministry’s allocation of around 180 coal blocks to public as well as private sector companies. The cause of delays in mine development is the process of land acquisition, award of mining lease and early redressal of environment and forest issues. Thus, these companies have made a strong demand for extending Act to include captive coal blocks.