 "Land acquisition might impel Coal India to revise capex plan")
State mining behemoth Coal India (CIL) expects to revise the earlier estimate of its five-year capital expenditure, due to land acquisition issues.
The firm says it has to acquire 20,000 acres to meet its annual output target of 908 million tonnes by 2019-20. For this, it had fixed a capex estimate of Rs 60,000 crore over the next five years. "There are some issues with regard to land acquisition. The final capex amount will eventually depend on the amount acquired," chairman Sutirtha Bhattacharya said, at the sidelines of the annual general meeting.
“The cost would depend on factors like whether the land is in an urban or rural area and also on states’ own Acts.” With the central government allowing its ordinance on a change in the central acquisition law to lapse, the onus is on state governments in this regard; they may also frame new laws. At present, Maharashtra offers the highest compensation in the country, five times the cost of the acquisition.
The cost would also vary as the compensation offered by states differ, he said. “We will be in dialogue with specific governments on the issues,” he added.
It has signed an agreement with Administrative Staff College of India, Hyderabad. The latter will train CIL executives about changes in rules and regulations, to form a framework for acquisition and compensation and digitise land details in coal bearing zones and in communicating with states.
In the first quarter of this financial year the company produced 121 mt, about 12 per cent higher than a year before, the highest for a single quarter in CIL's history.
Union coal secretary Anil Swarup had said in June that the rise was due to a pick-up in land acquisition and speedy environmental clearances, resulting in more mining.
