India creates ₹40,000 crore corpus for coal mine closure

The Ministry of Coal today released ‘AAROH: Annual Report on Mine Closure’, highlighting India’s progress in adopting scientific approaches to mine closure, ecological restoration, and sustainable post-mining land utilisation. | Photo Credit: PIB

Coal Minister G Kishan Reddy said on Wednesday that the government has created a corpus of around Rs 40,000 crore for scientific mine closures.

The dedicated corpus of over $5 billion that has been created for scientific and progressive mine closure demonstrates the government’s long-term commitment to environmentally responsible mining, ecological restoration, and the socio-economic development of mining-affected regions, Reddy said.

Speaking at the launch of Aaroh, which is India’s first report on scientific mine closure and repurposing practices, Reddy noted that India has scientifically closed 42 coal mines, including 33 blocks, in the last year alone.

He also informed that the ministry has set a target to scientifically close approximately 147 mines in the next 2 to 3 years, supported by a comprehensive ecosystem for mine closure.

India has fundamentally transformed the philosophy of mine closure, viewing it not as the end of mining but as the beginning of new opportunities for people, communities, and sustainable development, the Minister said.

Scientific mine closure is a national priority and a key pillar of the vision of Viksit Bharat 2047, he emphasised.

The Coal Ministry has created a comprehensive ecosystem for mine closure through the RECLAIM Framework, the SUVIKALP digital platform, the A.R.T.H.A. Framework and District Collector-led Mine Closure Advisory Committees, Reddy added.

For the first time, 25 per cent of the approved mine closure cost has been earmarked for community development, creating an investment potential of nearly Rs 10,000 crore over the next decade, he noted.

Highlighting the transformative potential of scientific mine closure, Reddy said that reclaimed mine lands across the country are being repurposed for renewable energy, eco-tourism, water conservation, agriculture, community infrastructure and sustainable livelihood generation.

Emphasising that successful mine closure requires the collective efforts of governments, industry, academia, civil society, local communities and international partners, Reddy expressed confidence that together they would transform every closed mine into a source of hope, opportunity and prosperity for future generations.

Coal Secretary Vikram Dev Dutt described mine closure as a critical stage in the life cycle of mining, where responsible resource extraction must transition into long-term environmental restoration, land repurposing and sustainable community development.

The Ministry of Coal has transformed mine closure from a regulatory requirement into a planned, people-centric process through the Mine Closure Guidelines, 2025, comprehensive frameworks and digital tools developed by the Coal Controller Organisation, ensuring that environmental rehabilitation, community participation and future land use are integrated into every stage of mine closure planning, he noted.

Referring to the signing of the implementation agreement for the Indo-German Technical Cooperation Project on “To-be-Closed Coal Mines” under the Indo-German Green and Sustainable Development Partnership, he said the Euro 10 million grant from the German Government and the European Union would enable India to adopt global best practices in scientific mine closure while reinforcing the shared vision that mine closure is not merely the end of mining, but the beginning of new opportunities for people, communities and the environment.

Published on July 22, 2026