Restarting 32 Mines to Meet Power Demand in Coal India

This year, Coal India Ltd. (CIL) intends to start up to five greenfield projects and reopen 32 closed coal mines.

In an interview with the Financial Times, PM Prasad, the chairman and managing director, said revenue-sharing arrangements with private companies would be used to oversee the resurrection. These mines will now be modernised to begin production after previously being judged unviable due to antiquated technology and manual operations. It is anticipated that at least six of the 32 mines will start production in the fiscal year 2025–2026. The program is a component of the Coal Ministry’s policy, which was unveiled in December 2024 and aims to increase domestic coal supply and decrease reliance on imports.

India’s Increasing Energy Consumption and Demand Patterns

In 2023, India’s energy usage was close to 40.5 exajoules. 49 percent of the demand was driven by the industrial sector, which was followed by the residential, transportation, and other sectors. India’s primary energy demand is expected to more than double by 2050 due to the country’s rapidly expanding population and economy. Despite promoting sustainable energy initiatives, the government is relying on dependable coal sources to satisfy this demand. Approximately 75% of India’s coal demands are currently met by Coal India’s 310 mines.

Obstacles in the Development of Clean Energy

India’s sustainable energy infrastructure has not expanded quickly enough in spite of large investments. Although $13 billion was invested in renewable energy in 2024, $68 billion is thought to be needed annually to meet the 2030 target of 500 GW from green sources.

 

Mine closures are moving slowly.

Over the last ten years, 299 mines have been classified as closed, abandoned, or discontinued by Coal India. After 2009, 130 of these mines stopped producing. The formal closüre procedure, however, has been slow. Even though 108 mines are designated for ultimate closure and 20 for temporary closure, as of early 2025, just three mines have been closed in accordance with official criteria.

Administrative difficulties, budgetary limitations, and the complicated processes involved in environmental restoration and land reclamation are the main causes of the delays. In order to monitor closure progress and guarantee regulatory compliance, the Ministry of Coal has responded by introducing updated closure rules and a consolidated digital platform.

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