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

Vedanta Metal Bazaar Expands to Global Markets

Vedanta Aluminium has expanded its digital e-commerce platform, Vedanta Metal Bazaar, to international markets, enabling overseas customers to order and purchase aluminium products online.The platform will now be available to buyers across Asia, Europe, Africa and the Americas, providing a digital gateway for export transactions with 24x7 access.In FY26, Vedanta Metal Bazaar processed transactions worth nearly $4.1 billion, or over Rs 380 billion, and fulfilled more than 23,000 orders. The platform is also used regularly by more than 550 MSMEs in India alongside large OEM customers.The export ..

Next Story
Infrastructure Urban

Ramky Infrastructure Q1 FY27 Revenue Rises 24.3%

Ramky Infrastructure Limited reported a 24.3% year-on-year increase in consolidated revenue from operations to Rs 471.2 crore for Q1 FY27, compared with Rs 3.79 billion in the corresponding quarter of FY26.Standalone revenue from operations rose 27.5% YoY to Rs 4.51 billion from Rs 3.54 billion, while total standalone income increased 35% to Rs 5.32 billion.Consolidated profit before tax stood at Rs 540.9 million during the quarter. The company highlighted a sharp sequential improvement compared with a pre-exceptional loss of Rs 190.1 million in Q4 FY26.Two of the three projects awarded during..

Next Story
Technology

LTTS Launches AgenticIQ AI Platform for Engineering

L&T Technology Services (LTTS) has launched AgenticIQ, an end-to-end agentic AI platform designed for engineering and manufacturing organisations.The platform is aimed at helping enterprises move beyond isolated AI pilots by enabling autonomous, multi-agent workflows across engineering, product development, manufacturing, industrial operations and customer experience.AgenticIQ is built on LTTS’ Engineering Intelligence portfolio and converts existing engineering capabilities into specialised, reusable AI agents. Its planning-first architecture is embedded into engineering and production ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement