Ranchi, Sept.9: In order to strike a judicious balance between meeting the organisation’s business goals and ensuring a sustainable source of income to project affected people, Coal India Limited formulated annuity schemes for those parting their land for coal mining projects.
The scheme is in lieu of direct employment or one time monetary compensation against land. It will not only reduce the overall cost to the company by way of reduction in wage cost but also help ensure sustainable cash flow to affected families.
The scheme was announced on September 2.
The Scheme will be implemented as an option in lieu of employment claim by the eligible affected family against land acquisition and annuity to be provided as per The Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act 2013 (RFCTLARR Act 2013) to all the affected families. All such entitled Affected Family shall opt for annuity and forgo the job benefit or one-time monetary compensation in lieu of employment against acquired land by entering into an agreement with project authority.
For land owner, annuity will be at the rate of Rs 150/- per decimal of land lost in lieu of employment to a minimum of Rs. 2000/- per month subject to a maximum of Rs 30000/- per month for the period of thirty years or life of project whichever is higher with 1 % incremental growth on every year on total annuity or Annual indexation to the Consumer Price Index for Agricultural Labourers over Rs.2000/- whichever is higher.
An affected family whose land or other immovable property has been acquired & possessed by the company and become eligible for employment as per respective State Policy and opt for annuity in lieu of employment or one-time monetary compensation will get Rs 30000 per month for the period of thirty years or life of project whichever is higher with incremental growth as mentioned above.
An affected family may be a non-title holder whose primary source of livelihood was dependant on the land acquired for more than three years prior to the date of acquisition will get Rs 2000/ – per month upto life of the project or 20 years whichever is higher with appropriate indexation to the Consumer Price Index for Agricultural Labourers.
The scheme authorizes the subsidiary board to modify the increment provision of annuity in view of financial viability and prevailing unique condition of the project provided such modification is not in conflict with prevailing Central/State Law or rules.
“The scheme is an attempt to strike a judicious balance between meeting organisation’s business goal and ensuring a sustainable source of income to project affected persons (PAPs,” says CIL CMD Pramod Agrawal in the preface of the scheme
“It is an endeavour to afford consistent source of earnings to PAPs while taking care of organizational priorities at the same time,” feels Binay Dayal, Director (technical)