New Delhi/Sanctoria: Eastern Coalfields Limited (ECL) marked a significant milestone in its land acquisition and rehabilitation efforts as the first landowner in West Bengal opted for the One Time Lump Sum / Lump Sum Annuity (OTLA) Scheme instead of traditional employment under the company’s R&R policy.
First Beneficiary Receives Landmark Compensation
Mr. Akash Deogharia, a resident of Lachmanpur village in Paschim Bardhaman district, West Bengal, became the first beneficiary to opt for the OTLA Scheme. Under this progressive initiative, he received a cheque of ₹93,32,810 (Rupees Ninety-Three Lakh Thirty-Two Thousand Eight Hundred Ten only) from Mr. Satish Jha, Chairman-cum-Managing Director, ECL, during a formal presentation ceremony at ECL headquarters.
Previously, Mr. Deogharia had been employed as a General Assistant since June 2025 under ECL’s R&R employment-linked compensation model. Following the introduction of the OTLA Scheme, he voluntarily chose monetary compensation in place of employment, reflecting a growing trend toward financial flexibility and independence among landowners.
OTLA Scheme: A Progressive Step in Land Acquisition Reforms
Mr. Satish Jha described the OTLA Scheme as a reform-oriented initiative designed to strengthen transparency, equity, and flexibility in ECL’s land acquisition framework. The scheme allows landowners to choose between a one-time lump sum payment or a modified annuity option, replacing the traditional model that primarily provided employment.
Financial compensation under the OTLA Scheme ranges from approximately ₹89 lakh to ₹1.20 crore for two acres of land, depending on location and other parameters. This approach ensures immediate financial security and enables landowners to pursue alternative opportunities, including entrepreneurship, higher education, or self-employment, rather than being confined to labor-intensive roles.
Benefits for Marginal Landowners and Youth
The CMD highlighted that the OTLA Scheme is particularly beneficial for marginal landowners who may struggle to meet employment eligibility due to small landholdings. By opting for the lump sum, beneficiaries gain immediate financial independence, which can be prudently invested to generate stable long-term income.
Additionally, small traders and business owners can use the funds to expand or upgrade existing businesses, while those already engaged in employment may choose the annuity option to create a reliable monthly income stream.
Beneficiary Experience: A Path to Professional Growth
Sharing his personal experience, Mr. Deogharia explained that choosing the OTLA Scheme was a well-considered decision after consultations with family, friends, and financial experts. He noted that the interest income from the lump sum would exceed his previous salary in ECL, allowing him to invest prudently in mutual funds and other instruments to preserve and grow his capital.
The scheme has enabled Mr. Deogharia to pursue his legal profession, aligning his career with his education and aspirations, while avoiding the physically demanding labor of underground mining. He also encouraged fellow landowners—especially educated youth and marginal landowners—to consider the OTLA Scheme and avoid intermediaries or brokers.
Transformative Potential of the OTLA Scheme
Mr. Deogharia expressed confidence in the future of the OTLA Scheme, noting that increased awareness is likely to drive more young landowners to opt for financial compensation, making it a transformative initiative for West Bengal and the ECL region.
About Eastern Coalfields Limited
Eastern Coalfields Limited (ECL), a subsidiary of Coal India Limited (CIL), is one of India’s largest coal-producing companies. Operating primarily in West Bengal and Jharkhand, ECL plays a crucial role in supplying coal for power generation and industrial use. The company has consistently focused on sustainable mining, technological innovation, and responsible land acquisition practices, including rehabilitation and resettlement of landowners under progressive initiatives such as the OTLA Scheme.
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