Government Allows Coal PSUs to Lease Land
21 Aug 2024
2 Min Read
CW Team
The Indian government has amended its coal policy to allow Public Sector Undertakings (PSUs) in the coal sector to lease land to commercial coal miners. This significant policy change is aimed at accelerating the development of coal resources by leveraging private sector participation in mining activities. The amendment facilitates the optimal use of land owned by coal PSUs, enabling them to generate additional revenue and enhance coal production in the country.
Previously, coal PSUs were restricted from leasing their land to private entities, limiting the scope of commercial mining operations. With this amendment, PSUs like Coal India Limited (CIL) can now enter into agreements with commercial miners, allowing them to use the land for mining purposes. This move is expected to attract more private investment into the coal sector, boost production capacity, and contribute to the overall energy security of the nation.
The decision aligns with the government's broader strategy to open up the coal sector to private participation, reduce dependency on coal imports, and ensure that India meets its growing energy demands. By allowing coal PSUs to lease land, the government is promoting a more flexible and efficient approach to resource utilization, which could lead to increased competition and innovation within the industry.
Commercial coal miners will benefit from this policy change as it provides them access to land that is already under the control of established PSUs, thereby reducing the hurdles associated with land acquisition and regulatory clearances. This is likely to expedite the process of starting new mining projects, ultimately enhancing coal supply to meet industrial and power generation needs.
The amendment also reflects the government's intent to maximize the value of PSU assets, ensuring that public resources are utilized effectively for national development. As a result, this policy change is expected to have a positive impact on both the coal industry and the broader economy, driving growth in sectors reliant on coal as a critical input.
The Indian government has amended its coal policy to allow Public Sector Undertakings (PSUs) in the coal sector to lease land to commercial coal miners. This significant policy change is aimed at accelerating the development of coal resources by leveraging private sector participation in mining activities. The amendment facilitates the optimal use of land owned by coal PSUs, enabling them to generate additional revenue and enhance coal production in the country.
Previously, coal PSUs were restricted from leasing their land to private entities, limiting the scope of commercial mining operations. With this amendment, PSUs like Coal India Limited (CIL) can now enter into agreements with commercial miners, allowing them to use the land for mining purposes. This move is expected to attract more private investment into the coal sector, boost production capacity, and contribute to the overall energy security of the nation.
The decision aligns with the government's broader strategy to open up the coal sector to private participation, reduce dependency on coal imports, and ensure that India meets its growing energy demands. By allowing coal PSUs to lease land, the government is promoting a more flexible and efficient approach to resource utilization, which could lead to increased competition and innovation within the industry.
Commercial coal miners will benefit from this policy change as it provides them access to land that is already under the control of established PSUs, thereby reducing the hurdles associated with land acquisition and regulatory clearances. This is likely to expedite the process of starting new mining projects, ultimately enhancing coal supply to meet industrial and power generation needs.
The amendment also reflects the government's intent to maximize the value of PSU assets, ensuring that public resources are utilized effectively for national development. As a result, this policy change is expected to have a positive impact on both the coal industry and the broader economy, driving growth in sectors reliant on coal as a critical input.
Next Story
Mumbai-Ahmedabad Bullet Train Set to Launch by 2028
India鈥檚 first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India鈥檚 infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..
Next Story
Mumbai-Gandhinagar Train Service Enhances Passenger Capacity
The Mumbai Central鈥揋andhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India鈥檚 busiest business corridors. This upgrade, effective from 11 May, raised the train鈥檚 seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai鈥揂hmedabad鈥揋andhinagar route, which regularly operates at over 150 percent seat occupancy...
Next Story
Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently
Delhi鈥檚 ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river鈥檚 health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..
