Understanding the Draft Coal Bearing Areas (Acquisition and Development) Amendment Bill, 2024

INTRODUCTION

India’s energy strategy is at a pivotal juncture. As the nation seeks to simultaneously ensure energy security and promote sustainable development, it must address regulatory roadblocks that hinder coal sector efficiency. The Draft Coal Bearing Areas (Acquisition and Development) Amendment Bill, 2024 seeks to overhaul the colonial-era Coal Bearing Areas (Acquisition and Development) Act, 1957 (CBAA) and align it with current economic realities and constitutional mandates.

This article provides an in-depth analysis of the 2024 draft amendment, its legal and policy implications, and how it reshapes India’s approach to land acquisition for coal mining.

BACKGROUND: UNDERSTANDING THE 1957 ACT

The CBAA, 1957 was enacted to enable the central government to acquire land containing coal deposits for government-run mining operations, primarily for Coal India Limited (CIL) and its subsidiaries . This was consistent with the nationalization of coal mines in the 1970s.

Over time, however, several gaps emerged:

The Act excludes private companies from seeking land acquisition under its provisions.

It lacks modern provisions for environmental protection and fair rehabilitation.

Affected communities, particularly tribals in Schedule V Areas, had little say in land acquisition.

With the opening of commercial coal mining to private entities in 2020, and with India targeting energy self-reliance, a revised acquisition framework became essential.

OBJECTIVES OF THE 2024 AMENDMENT BILL

The Ministry of Coal released the draft amendment in early 2024 with these primary objectives:

1. To enable private sector participation in land acquisition for coal mining.
2. To align acquisition procedures with the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act).
3. To ensure sustainable development, including environmental and social safeguards.
4. To improve efficiency, transparency, and speed of the land acquisition process.
5. To empower local communities through fair compensation and proper rehabilitation.

KEY PROVISIONS OF THE DRAFT AMENDMENT BILL

1. Extension to Private Companies

The most transformative provision is the extension of the acquisition process to private entities that win coal blocks through auction. Earlier, only government companies could acquire land through the CBAA. This change is crucial for enabling commercial coal mining by private firms, as permitted under the Mines and Minerals (Development and Regulation) Act, 1957 after the 2020 amendments.

2. Alignment with LARR Act, 2013

The draft proposes to harmonize compensation, rehabilitation, and consent procedures with the LARR Act. This includes:

Compensation at four times the market value in rural areas and twice in urban areas.

Mandatory social impact assessment (SIA).

Rehabilitation and resettlement (R&R) provisions, including job offers or monetary compensation to displaced persons.

3. Environmental Safeguards

Acquired land cannot be used for mining until Environmental Clearance (EC) is obtained under the Environmental Impact Assessment (EIA) Notification, 2006. This includes:

Conducting public hearings.

Ensuring forest and biodiversity protection, especially in ecologically sensitive regions.

4. Digital and Transparent Processes

To increase transparency and reduce corruption, the draft mandates:

Use of online platforms for acquisition notices and compensation details.

A publicly accessible database for project progress and environmental compliance.

5. Time-bound Approvals

The amendment introduces a timeline of 12–18 months for the entire acquisition process—from notification to possession—ensuring that land acquisition does not delay mining operations.

6. Dispute Resolution and Grievance Redressal

The Bill proposes the creation of independent grievance redressal authorities and special benches or tribunals to handle disputes efficiently.

IMPLICATIONS OF THE AMENDMENT BILL

 Positive impacts

1. Energy Security and Increased Coal Production

With over 80% of India’s energy demand still met by coal,  private investment in coal mining will help reduce imports and boost domestic production. This aligns with the Atma nirbhar Bharat goal of energy self-sufficiency.

1. Improved Compensation and Local Participation

By aligning with the LARR Act, the Bill promises fair compensation and livelihood restoration for landowners and affected communities, including Scheduled Tribes (STs).

1. Ease of Doing Business

The proposed reforms are expected to improve India’s ranking on indices measuring ease of land acquisition and mining investment attractiveness.

1. Environmental and Digital Governance

The requirement for ECs, digitized records, and compliance tracking ensures environmental responsibility and process transparency.

 Concerns and Challenges

1. Dilution of Tribal Rights

Civil society groups argue that the Bill sidesteps the Forest Rights Act, 2006 (FRA) and Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA). These laws require consent of gram sabha for any land acquisition in tribal areas. The amendment may weaken these protections.

1. Environmental Risks

While environmental clearance is mandated, speedy acquisition and commercial incentives may pressure authorities to dilute norms. This is especially risky in forest-rich coal-bearing areas like Chhattisgarh and Jharkhand.

1. Land Conflicts and Legal Ambiguity

Multiple stakeholders—state governments, private miners, local communities—may lead to conflicts. Also, the concurrent applicability of LARR and CBAA (even post-amendment) may create legal confusion.

1. Risk of Exclusion and Inequity

Landless laborers, sharecroppers, and forest dwellers often lack formal title to land and may be excluded from compensation, despite facing displacement.

INTERNATIONAL COMPARISONS

Countries like Australia and Canada involve indigenous communities through impact benefit agreements (IBAs). South Africa mandates black ownership and profit-sharing in mining . India’s draft law, while reformist, could learn from these models in balancing economic goals with social equity.

Way Forward

To ensure successful implementation, the following must be addressed:

1. Full integration of FRA and PESA protections, especially in tribal districts.
2. Clear rules to avoid duplication/conflict between CBAA and LARR Act.
3. Independent monitoring of social impact and environmental compliance.
4. Enhanced local capacity building and legal aid for affected people.
5. Periodic public review of mining projects and acquisition procedures.

CONCLUSION

The Draft Coal Bearing Areas (Acquisition and Development) Amendment Bill, 2024 is a welcome modernization of India’s outdated coal acquisition regime. By introducing fair compensation, transparency, and private sector facilitation, the bill can unlock the sector’s potential.

However, the reform must not come at the cost of ecological balance, tribal autonomy, or justice for the vulnerable. With robust safeguards and participatory governance, the amendment can become a landmark in India’s transition to responsible resource governance.

REFERENCES

1. Coal Bearing Areas (Acquisition and Development) Act, 1957, Bare Act
2. Press Information Bureau, “Commercial Mining Opened to Private Sector,” 2020, Source
3. Ministry of Coal, “Draft CBA Amendment Bill, 2024 – Public Consultation Document,” 2024, Coal Ministry Website
4. Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, Bare Act
5. Mines and Minerals (Development and Regulation) Act, 1957, with 2020 Amendments, Legal Source
6. Ministry of Coal Annual Report 2023–24, Coal Statistics