Coal India to Reopen 32 Mines, Launch New Projects
POWER & RENEWABLE ENERGY

Coal India to Reopen 32 Mines, Launch New Projects

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and Managing Director PM Prasad told the Financial Times that the defunct mines, previously considered unviable due to outdated machinery and manual operations, will be revived through revenue-sharing partnerships with private entities.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.

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.

Next Story
Infrastructure Urban

Titan Intech Strengthens UltraLED Push With Global LED Veteran

Titan Intech has announced the induction of global LED industry veteran Su Piow Ko to its Board of Directors, marking a strategic step in strengthening its UltraLED Displays roadmap and building globally competitive LED display solutions from India.The appointment aligns with Titan Intech’s ambition to position India as a hub for advanced, high-quality LED display manufacturing. With an increased focus on UltraLED Displays, the company aims to enhance technical governance, raise manufacturing standards and expand its presence across global markets.Su Piow Ko brings over three decades of inte..

Next Story
Infrastructure Urban

Dun & Bradstreet Flags New Growth Engines in India 2026 Outlook

Dun & Bradstreet has released its India 2026: D&B’s Perspective report, projecting a stable macroeconomic environment underpinned by fresh opportunities for productivity-led and inclusive growth. The report outlines how India’s next growth phase will be driven by digitised logistics, trusted data ecosystems, clean energy and rising city vitality.According to the outlook, India’s GDP growth is expected to reach around 6.6 per cent by FY2027, supported by resilient consumer demand and sustained public investment. Manufacturing is seen entering a new phase, moving beyond scale towar..

Next Story
Building Material

Sources Unlimited Introduces Vitamine Pendant Lamp by Melogranoblu

Sources Unlimited has launched the Vitamine Pendant Lamp by Melogranoblu in India, expanding its portfolio of curated international luxury lighting solutions. Designed and crafted in Italy, the Vitamine pendant reflects contemporary glass artistry, combining hand-blown craftsmanship with refined aesthetics and atmospheric illumination.The Vitamine Pendant Lamp is sculpted in hand-blown glass and is available in frosted, silver and black metallised finishes. Each finish offers a distinct visual identity while maintaining a cohesive and sophisticated design language. The lamp’s softly contoure..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App