The Directorate General Resettlement (DGR), functioning under the Department of Ex-Servicemen Welfare (DESW), Ministry of Defence, has issued a communication in June 2026 inviting applications and registrations from eligible widows, disabled ex-servicemen and orphan wards under a special welfare initiative linked with Coal India Limited (CIL).
The communication reveals that DGR has signed an arrangement with Coal India Limited to provide financial benefits through Ex-Servicemen Coal Loading and Transportation Companies operating in various coal subsidiaries across India.
This initiative is intended to generate a steady source of income for vulnerable sections of the defence community, particularly military widows, disabled veterans and orphan children of deceased armed forces personnel.
What Does the DGR Letter Say?
According to the letter circulated to Kendriya Sainik Board (KSB), Zila Sainik Boards (ZSBs), Regimental Centres and Record Offices:
- DGR has entered into an arrangement with Coal India Limited.
- Eligible widows, disabled ex-servicemen and orphan wards can be attached to DGR-sponsored Coal Loading and Transportation Companies.
- Beneficiaries are required to make a one-time contribution of ₹1,00,000.
- In return, they will receive a fixed monthly remuneration of ₹4,000 for five years.
- The initial contribution amount is reportedly refundable after completion of five years.
- Authorities have been directed to widely disseminate information among eligible beneficiaries.
The scheme appears to be an updated welfare variant of the existing DGR Coal Tipper Attachment and Coal Loading welfare models. The financial figures mentioned in the 2026 letter indicate an enhancement over earlier versions of the scheme.
Background: What Is the DGR Coal Loading and Transportation Scheme?
The Ex-Servicemen Coal Loading and Transportation Scheme is one of the oldest self-employment initiatives administered by DGR.
The scheme operates under a Memorandum of Understanding (MoU) between Coal India Limited and DGR originally signed in April 1999. Under this arrangement, retired armed forces personnel form companies that undertake coal loading and transportation contracts in Coal India subsidiaries.
The objectives include:
- Providing self-employment opportunities to ex-servicemen.
- Generating sustainable income.
- Encouraging entrepreneurship among retired defence personnel.
- Creating employment opportunities for other veterans.
Under DGR rules, these companies are generally required to employ a substantial percentage of ex-servicemen in their workforce.
Coal India Subsidiaries Covered Under the Scheme
Historically, DGR-sponsored Coal Loading and Transportation Companies have operated in the following coal-producing regions:
| State | Coal Company |
| Odisha | Mahanadi Coalfields Limited (MCL) |
| Jharkhand | Bharat Coking Coal Limited (BCCL) |
| Jharkhand | Central Coalfields Limited (CCL) |
| Chhattisgarh | South Eastern Coalfields Limited (SECL) |
| Maharashtra | Western Coalfields Limited (WCL) |
| Other Coal Areas | Additional subsidiaries as notified |
These companies execute transportation and loading contracts sponsored through DGR.
How Does the Welfare Model Work?
Based on the June 2026 communication and available DGR records, the model broadly works as follows:
Step 1: Registration
Eligible beneficiaries register through the prescribed DGR process.
Step 2: Attachment
The beneficiary is attached to a DGR-sponsored Coal Loading and Transportation Company.
Step 3: Contribution
A one-time investment/contribution is made by the beneficiary.
Step 4: Monthly Income
The company pays a fixed monthly amount for a specified period.
Step 5: Refund of Principal
Upon completion of the prescribed tenure, the principal amount is returned, subject to the terms of the agreement.
The exact contractual provisions may vary from company to company and beneficiaries should carefully examine the agreement before depositing funds.
Who Is Eligible?
Based on DGR guidelines for welfare schemes connected with coal transportation companies, the following categories are generally eligible:
1. Defence Widows
Widows of Armed Forces personnel who satisfy prescribed conditions.
2. Disabled Ex-Servicemen
Veterans medically boarded out or suffering from service-attributable disabilities above prescribed limits.
3. Orphan Wards
Dependent orphan children of ex-servicemen or serving personnel represented by legal guardians.
4. Dependents of Deceased Defence Personnel
Certain dependent categories may also be considered subject to DGR policy.
Eligibility conditions may include:
- Unemployment status.
- Not having availed another DGR welfare scheme.
- Age restrictions where applicable.
- Submission of supporting documents.
Financial Benefits Under the 2026 Communication
The newly circulated DGR communication mentions:
| Particulars | Amount |
| One-time contribution | ₹1,00,000 |
| Monthly remuneration | ₹4,000 |
| Duration | 5 Years |
| Total monthly receipts | ₹2,40,000 |
| Refund of principal | ₹1,00,000 (after 5 years as per scheme terms) |
Total Potential Receipts
Over five years:
- Monthly payments = ₹4,000 × 60 months = ₹2,40,000
- Refund of contribution = ₹1,00,000
Total amount receivable = ₹3,40,000
This represents a significant enhancement over the earlier Coal Tipper Attachment Scheme, which involved a deposit of ₹85,000 and monthly payment of ₹3,000 for five years.
Important Documents Likely Required
Applicants should keep the following documents ready:
For Widows
- Widow Identity Card
- PPO
- Death Certificate
- Dependency documents
- Aadhaar and PAN
For Disabled Ex-Servicemen
- ESM Identity Card
- Disability Certificate
- PPO
- Service documents
- Aadhaar and PAN
For Orphan Wards
- Birth Certificate
- Dependency Certificate
- Death Certificate of parent
- Guardianship documents
- Identity proof
Additional documents may be demanded by DGR or sponsoring companies
Where to Apply?
Applications are generally processed through:
- Directorate General Resettlement (DGR)
- Kendriya Sainik Board
- Zila Sainik Boards
- Rajya Sainik Boards
- Regimental Centres
- Record Offices
Official information can be accessed through:
Department of Ex-Servicemen Welfare (DESW)
and
Directorate General Resettlement (DGR)
Points of Caution Before Depositing Money
Beneficiaries should carefully verify:
Written Agreement
Always obtain and read the formal agreement executed with the coal transportation company.
Company Credentials
Ensure the company is genuinely sponsored by DGR.
Refund Clause
Verify the conditions governing refund of the principal contribution.
Payment Schedule
Understand monthly payment timelines and bank transfer procedures.
Nomination Facility
Check whether nomination provisions exist in case of death of the beneficiary.
Why This Scheme Is Important
Many defence widows, disabled veterans and orphan wards face financial challenges after the loss or disability of the earning member.
This scheme seeks to provide:
- Predictable monthly income.
- Low-management investment.
- Welfare-linked financial support.
- Protection of principal through refund provisions.
- Participation in an officially recognized DGR framework.
The scheme complements several other DGR self-employment initiatives such as Security Agency Schemes, COCO Outlets, LPG Distributorships and Retail Outlet schemes.
Frequently Asked Questions (FAQs)
Is this a Government pension scheme?
No. It is a welfare-linked financial arrangement administered through DGR-sponsored coal loading and transportation companies.
Is the ₹1 lakh contribution refundable?
The June 2026 communication states that the contribution is refundable after five years, subject to scheme terms and agreement conditions.
Can a serving soldier apply?
The current communication is meant for widows, disabled ex-servicemen and orphan wards.
How much monthly income is payable?
The communication mentions a fixed remuneration of ₹4,000 per month for five years.
Where can applicants get assistance?
Applicants may contact their nearest Zila Sainik Board, Rajya Sainik Board, Record Office or DGR.
Conclusion
The June 2026 DGR initiative linked with Coal India Limited represents a potentially valuable welfare opportunity for widows of armed forces personnel, disabled ex-servicemen and orphan wards. With a proposed monthly payment of ₹4,000 for five years and refund of the principal contribution at maturity, the scheme offers a structured income-support mechanism under the DGR framework.
Interested beneficiaries should approach their nearest Zila Sainik Board or Record Office at the earliest, obtain the detailed application format, verify all terms and conditions, and ensure that the sponsoring company is duly approved by DGR before making any financial commitment.