Coal India has revised its land compensation policy, offering Rs. 89 lakh to Rs. 1.2 crores, and Rs. 44,000 monthly pension for 45 years to landowners who opt out of jobs, aiming to provide better financial stability and career flexibility.
Coal India has introduced a major change in its land acquisition compensation policy, bringing significant benefits to landowners. In a recent board meeting held on 30th June 2025, the Coal India Board approved a new policy that allows landowners to receive a large one-time compensation amount and an extended pension if they choose not to take a job in return for their land. Earlier, landowners who did not opt for employment were eligible for compensation of Rs. 5 lakh per acre or a monthly pension of Rs. 30,000 for 30 years, with a 1% annual increment. However, the new policy is far more generous and practical, especially for today’s educated youth.
What’s New in the Policy?
Under the revised policy, landowners who give up 2 acres of land and do not want a job will now receive a one-time compensation ranging between Rs. 89 lakh and Rs. 1.2 crore. The exact amount depends on the government’s valuation of land in that particular area. In addition to this, they will receive a monthly pension of Rs. 44,000 for 45 years, with an annual increase of 1%. If the landowner passes away during this period, their legal dependents will continue receiving the pension for the remaining term. This change will not only benefit the landowners financially but also provide long-term security.
Why the Change?
Over the years, it was observed that many young individuals who accepted jobs in exchange for land were highly educated. However, they were often appointed to lower-level positions such as General Assistant Grade-I, which involved tough manual labour in underground coal mines, including pushing coal-laden trolleys. This work did not match their qualifications, leading many to resign shortly after joining. Understanding this mismatch and the growing dissatisfaction among the youth, Coal India decided to offer a better alternative – financial independence with dignity. Now, instead of settling for unsuitable jobs, landowners or their family members can use the lump-sum amount to start their own business or invest elsewhere, rely on a secure pension system to manage daily living expenses, Allow their children to pursue better career opportunities based on education and skills.
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Positive Reactions from Local Leaders and Public
The move has been appreciated by local leaders and unions. Ganesh Kumar, District Secretary of the CPM and leader of the labour union CITU, praised the decision, saying that it will bring long-term benefits and financial stability to the families who give their land for coal mining projects. He further added that this new compensation policy will not only make landowners self-reliant but also help maintain a better balance between the coal industry and the local community.
Eastern Coalfields Limited (ECL) Also Implements Change
Coal India’s subsidiary, Eastern Coalfields Limited (ECL), has also implemented this revised policy. The new structure is expected to have a significant impact on its Rajmahal project and could set a precedent for other subsidiaries under Coal India. Previously, only one member from a family would get a job, leaving others in the household with little support. Now, by receiving a large one-time payment and long-term pension, entire families can benefit, reducing internal disputes and enabling better future planning.
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