Coal India to Reopen 32 Mines, Launch New Projects

10 Jun 2025 CW Team

Chairman and Managing Director PM Prasad told the Financial Times that the defunct mines, previously considered unviable due to outdated machinery and manual operations, will be revived through revenue-sharing partnerships with private entities. At least six of these mines are expected to resume production in the financial year 2025–26.

This move aligns with the Coal Ministry’s policy announced in December 2024, which encourages the restoration of closed mines to boost domestic coal output and reduce reliance on imports. Tenders for 27 mines have already been awarded this year, with five more in the pipeline.

India’s total energy consumption reached around 40.5 exajoules in 2023, with the industrial sector accounting for 49 per cent of this demand. With energy use projected to more than double by 2050, coal remains critical in the interim despite substantial investments in renewables. While India invested USD 13 billion in clean energy last year, it remains well below the USD 68 billion required annually to meet its 2030 goal of 500 GW from green sources, according to research firm Ember.

Coal continues to dominate India’s energy mix, powering 74 per cent of electricity generation in 2024. Although this share is projected to fall to 55 per cent by 2030 and 27 per cent by 2047, coal is expected to remain vital to energy security in the medium term. Coal India currently operates 310 mines and supplies roughly 75 per cent of the country’s coal requirements. The company anticipates a 6–7 per cent annual growth in production, aiming to reach 1.5 billion tonnes by 2030.

Despite this expansion, Prasad reaffirmed Coal India’s commitment to India’s net-zero emissions target by 2070, stating, “We will reach peak coal by 2035.” The strategy, he explained, is to ensure secure and affordable energy now while transitioning gradually to cleaner sources.

Meanwhile, the formal closure of old coal mines has lagged. Of 299 abandoned or discontinued mines identified over the past decade—130 of which shut after 2009—only three have been formally closed under government guidelines as of early 2025. Though 108 mines are marked for final closure and 20 for temporary closure by Coal India Ltd and SCCL, progress has been hampered by financial, administrative, and environmental hurdles.

To address these delays, the Ministry of Coal has introduced updated mine closure guidelines and launched a centralised portal to monitor the process, with a focus on environmental rehabilitation and community welfare.

The renewed push for coal, while controversial amid global calls to cut fossil fuel use, underscores India’s need to balance long-term sustainability with immediate energy security in one of the world’s fastest-growing economies.

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State-run Coal India Ltd is set to reopen 32 closed mines and launch up to five new greenfield projects this year, as the country turns back to coal to address the widening gap between rising energy demand and the limited capabilities of its renewable infrastructure.Chairman and Managing Director PM Prasad told the Financial Times that the defunct mines, previously considered unviable due to outdated machinery and manual operations, will be revived through revenue-sharing partnerships with private entities. At least six of these mines are expected to resume production in the financial year 2025–26.This move aligns with the Coal Ministry’s policy announced in December 2024, which encourages the restoration of closed mines to boost domestic coal output and reduce reliance on imports. Tenders for 27 mines have already been awarded this year, with five more in the pipeline.India’s total energy consumption reached around 40.5 exajoules in 2023, with the industrial sector accounting for 49 per cent of this demand. With energy use projected to more than double by 2050, coal remains critical in the interim despite substantial investments in renewables. While India invested USD 13 billion in clean energy last year, it remains well below the USD 68 billion required annually to meet its 2030 goal of 500 GW from green sources, according to research firm Ember.Coal continues to dominate India’s energy mix, powering 74 per cent of electricity generation in 2024. Although this share is projected to fall to 55 per cent by 2030 and 27 per cent by 2047, coal is expected to remain vital to energy security in the medium term. Coal India currently operates 310 mines and supplies roughly 75 per cent of the country’s coal requirements. The company anticipates a 6–7 per cent annual growth in production, aiming to reach 1.5 billion tonnes by 2030.Despite this expansion, Prasad reaffirmed Coal India’s commitment to India’s net-zero emissions target by 2070, stating, “We will reach peak coal by 2035.” The strategy, he explained, is to ensure secure and affordable energy now while transitioning gradually to cleaner sources.Meanwhile, the formal closure of old coal mines has lagged. Of 299 abandoned or discontinued mines identified over the past decade—130 of which shut after 2009—only three have been formally closed under government guidelines as of early 2025. Though 108 mines are marked for final closure and 20 for temporary closure by Coal India Ltd and SCCL, progress has been hampered by financial, administrative, and environmental hurdles.To address these delays, the Ministry of Coal has introduced updated mine closure guidelines and launched a centralised portal to monitor the process, with a focus on environmental rehabilitation and community welfare.The renewed push for coal, while controversial amid global calls to cut fossil fuel use, underscores India’s need to balance long-term sustainability with immediate energy security in one of the world’s fastest-growing economies.

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