ECL announces new land reforms for coal mine acquisitions
The Statesman | 2 July 2025
Eastern Coalfields Limited (ECL), a subsidiary of Coal India Limited, has announced a progressive new policy aimed at reforming its land acquisition compensation framework. Under this initiative, landowners will be given the option of receiving either a one-time lump sum monetary compensation or a modified annuity scheme (on a pro-rata basis), in place of the traditional employment-based compensation model.
This policy marks a significant departure from the longstanding practice of offering employment to land losers. It is expected to benefit marginal landowners, who often struggle to meet the eligibility criteria for employment based on the size of their landholdings. The lump sum payment will ensure immediate financial security, a more equitable distribution of benefits, and greater flexibility for landowners.
Importantly, the new framework has been designed with a forward-looking vision. It aims to empower educated youth from project-affected families by providing them with capital, thereby enabling them to pursue entrepreneurship, self-employment, or higher education, instead of being absorbed into lower-level roles within the company.
Additionally, small-scale traders, rather than being tied to employment at ECL, can use the financial gain to upgrade their existing businesses. Landowners who already have a source of income—such as a job or enterprise—can opt for the annuity scheme, which will serve as a second monthly income stream.
“This initiative reflects our ongoing commitment to the inclusive and sustainable development of project-affected families. It acknowledges the evolving aspirations of today’s youth and the current economic realities faced by landowners. We believe this approach will not only ensure fair compensation but also foster local economic development and innovation across various sectors,” said an ECL spokesperson.
To support the successful implementation of the policy, ECL will provide financial counselling, skill development assistance, and awareness drives in the project areas. These measures aim to help beneficiaries make informed decisions regarding the effective utilisation of their compensation.
Eastern Coalfields Limited remains steadfast in its commitment to responsible mining, inclusive growth, and contributing to the socio-economic progress of the regions in which it operates.