+
Government Allows Coal PSUs to Lease Land
COAL & MINING

Government Allows Coal PSUs to Lease Land

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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code