Details

SHORT NOTES ON ANNUITY SCHEME OF CIL, 2020

A. Circumstantial

• Shift to Outsourcing: Coal companies are adopting outsourcing to enhance efficiency and cut costs.

• Reduced Employment: Fewer in-house jobs; land acquisition demands often exceed job availability.

• Alternate Livelihood: Annuity offers a sustainable alternative to direct employment.

B. Scope

• Employment Alternative: Annuity is offered instead of employment to affected families.

• Opt-In System: Families choosing annuity must waive job or lump-sum compensation, entering an agreement with project authorities.

C. Legal Framework

• Under RFCTLARR Act, 2013:
  

  • Options: Employment with training, Rs5 lakh one-time payment, or Rs2,000/month annuity for 20 years (indexed).

  • Annuity is a legally valid option ensuring long-term financial support.

D. Annuity Entitlements

• Eligible Beneficiaries:

  1. Landowners (as per Act or negotiated value)

  2. Families eligible for employment

  3. Non-title holders with 3+ years livelihood dependency

  4. Forest dwellers losing rights under FRA, 2006

• Benefit Details:

  • Rs2,000-Rs 30,000/month for 30 years or project life (whichever longer), with annual increase.

  • Transferable to successors in case of death.