Unfinished Business: India’s Coal Mine Closure Crisis Threatens Just Transition

The non-operational mines either remain “abandoned” (owners have no intention to resume mining) or “discontinued”, which implies that mining may resume with upgraded technology. Scientific mine closure is one of the foundational aspects of a ‘just transition’ towards clean energy. Over 21 million Indians depend on the fossil fuel economy for their livelihood. Experts suggest that as India accelerates its climate action, its focus should be on just transition, including economic restructuring, workforce reskilling, land repurposing, revenue substitution and responsible social practices, as IndiaSpend reported in November 2021.

The just transition framework in the coal sector is meant to ensure that mined land is scientifically reclaimed before being repurposed for sustainable activities or returned to local communities. Land reclamation involves following a comprehensive plan to restore the solid structure and revegetation by agriculture or forestry to improve the physical condition of the mined land. Since this involves considerable expense, companies have been prone to merely abandoning depleted mines, we reported in March 2024.

However, most of the abandoned or discontinued mines remain in limbo--neither have they been reclaimed nor restored--neglecting both environmental rehabilitation and community welfare. Of the 299 non-operational mines, at least 28 abandoned mines are out of coal reserves but have not yet been declared closed, RTI responses reveal, reflecting a waste of natural resources that could have been used for green initiatives. One of three closed mines, Pathakhera No. 02 in Madhya Pradesh’s Betul district, took almost 13 years to complete--it was abandoned in June 2011. All the three coal mines achieved formal closure just last year. Not only does this extend unemployment among coal workers but it also poses a great risk of accidents and illegal mining.

At the same time, the coal ministry keeps extending mining leases. This goes against the idea of “equity” as an integral part of Just Transition--correcting past injustices and structural issues that have disenfranchised vulnerable populations from their land. Land Conflict Watch, a data research agency tracing disputes on natural resources, has tracked 30 such conflicts over acquisitions of coal mining land.

What is required is to change the system so communities can collectively own and manage returned mining land. This would help make up for past injustices and support fair, democratic practices. Instead, the ministry has initiated renewable energy projects without securing closure, raising concerns whether it intends to ever return land to the communities.

Repurposing land to establish solar energy projects can cause the power imbalance and inequalities existing in the fossil-fuel based regime to be reproduced. Just transition requires empowerment of communities that have been historically ignored--small, worker-owned energy cooperatives must be given a push rather than large-scale solar projects overseen by private or government corporations.

As per experts, the proposed Coal Bearing Act (CBA) Amendment Bill of 2024 has the potential to restore community ownership of land previously acquired. The Bill allows the Union government to transfer or return land post-closure. However, it risks being rendered ineffective amidst such ground realities.

India’s struggles with mine closures

On January 12, 2024, CIL announced that it had identified 299 coal mines for comprehensive closure. These efforts come over a decade after the first closure guidelines were released in 2009, followed by revisions in 2013, 2020, and 2025. Despite these policies, formal closure remains elusive.

A scientific closure involves reclaimation of mined land through backfilling (filling pits with minerals, soil and rock material), removing coal waste, and afforestation with native vegetation. The process is overseen by the Coal Controller Organisation (CCO), which issues certificates marking a mine's formal closure. To date, only three coal mines--Pathakhera No. 01, Pathakhera No. 02 and Satpura No. 02 Underground (UG) mines of Western Coalfields Limited (WCL)--have been officially closed under these guidelines. Aside from this, only five applications for final closure have been submitted to the CCO.

The primary reasons for delays include government inaction and financial constraints. Experts argue that India lacks a robust domestic financial system for mine closures and requires external funding at the global level. As India pursues its net-zero emissions targets, transitioning from coal will necessitate closing mines and repurposing the land to shift towards a green economy.

What coal mine closures entail

Mine closure involves restoring the physical, chemical, and biological quality of land disturbed by mining activities. Studies show that unclosed mines continue to emit methane and carbon dioxide, and can contaminate groundwater through acid drainage and toxic heavy metals.

The term “mine closure” is distinct from “abandoned” mines, which owners have no intention of reclaiming, and “discontinued” mines, which remain inaccessible but could reopen if technology allows. The coal ministry, however, has put them under one umbrella in the past.

Of the 299 mines identified, CIL earmarked 69 for “final closure” and 14 for “temporary closure”. Temporary closures involve short-term safety measures to secure mines while keeping reserves intact, allowing for potential reopening. If a mine is not reallocated within five years, it must undergo final closure.

Mine closure occurs in two stages: progressive closure, which involves continuous restoration throughout the mining period, and final closure, which restores the area to a sustainable ecosystem. To fund these activities, mining companies must deposit money into an escrow account held by a nationalised bank under the CCO, calculated at Rs 14 lakh per hectare for opencast mines and Rs 2 lakh for underground mines (as per latest revision). Funds are reimbursed every five years based on expenditures until the mine is fully closed.

The case of Pathakhera No. 02

Pathakhera No. 02, located in Madhya Pradesh’s Betul district, was the first to close down after following the 2013 guidelines. It first began operations in 1970. The mine, which spanned 281.387 hectares, ceased operations on June 13, 2011, after exhausting its reserves.

The closure process involved sealing mine entries, dismantling non-residential buildings, removing debris, spreading topsoil on degraded land, and planting vegetation. Mining equipment that had completed its rated life was scrapped, while other usable machinery was transferred to nearby projects. Residential units were repurposed for workers in neighboring mines.

On October 21, 2024, the CCO awarded Pathakhera its final closure certificate following inspections by the Central Mine Planning & Design Institute Limited and the CCO.

“Mining activities leave long lasting impacts on the landscape, ecology and on local inhabitants,” said the WCL’s report on why the mine was closed. “These activities disturb the delicate environmental and social equilibrium that exists in its area of influence. Hence, it becomes imperative on part of the mine operator to restore the equilibrium.”

Pathakhera No. 01 and Satpura No. 02 UG mines are also from Betul district, which were established in 1963 and 1973 respectively. They were closed due to depletion of coal resources.

Why are more mines not being shut?

While the closure of WCL’s Pathakhera is a step towards a cleaner future, most abandoned or discontinued coal mines are maintaining their status quo, which experts say is due to the government’s reluctance to relinquish control over the land. The coal ministry continues to extend their mining leases, citing potential future coal reserves.

For example, Mahanadi Coalfields Limited has requested lease extensions for Handidhua Colliery and Deulbera Colliery, although work in both of these mines has been abandoned. The justification is that if coal mines still hold reserves but have been discontinued due to technical or financial challenges, they remain under the tenancy of the ministry in anticipation of being reopened again for excavation of untapped reserves.

This policy keeps land under the coal ministry’s control, preventing communities from reclaiming it. As a result, people employed in coal-dependent economies face job losses, with estimates suggesting around 100 miners become unemployed every day. While CIL claims displaced workers are absorbed into other mining projects, the reality is far more uncertain.

About 5,000 miners were left unemployed when 10 coal mines were abandoned in Madhya Pradesh’s Anuppur, forcing them to migrate in search of work. In Jharkhand, an estimated 300,000 people reportedly lost their jobs following the closure or abandonment of 144 coal mines.

In response to global pressure to secure livelihoods for mine-dependent communities, the Indian government has promoted renewable energy projects--particularly solar parks--on reclaimed land from closed coal mines as a key part of the Just Transition strategy.

However, as per an RTI response from WCL, CIL’s Standard Operating Procedure on the “identification of de-coaled lands for repurposing activities” states that mines do not need to be scientifically closed before hosting repurposing projects. This loophole allows coal companies to claim environmental responsibility while avoiding full closure.

"Ideally, before undertaking renewable energy projects, companies should have ensured that scientific closure was achieved. Sustainable initiatives should involve consultations with all stakeholders, including local communities,” said Pooja Gupta, a research associate in the Climate Action programme at the National Foundation of India.

The battle over land rights

This also raises the issue of tenurial rights. Just Transition envisions returning land to communities for sustainable livelihoods and climate mitigation efforts. For instance, in Jharkhand’s Ramgarh, villagers express relief at the thought of mining--and the resulting pollution--ending. As this reporter had previously reported here (and here), they just want their land back to be able to farm it. Yet, due to unclear tenurial policies, companies often transfer land to other departments instead of returning it to local communities.

The lack of any guiding policy regarding return of closed coal mine land can negate all Just Transition efforts. In Jharkhand--the state with the highest number of coal mines and a pioneer in developing a fair energy transition framework--the lack of guidelines on post-closure land use is causing significant delays in implementation of the Just Transition framework, as reported previously.

“In cases where coal mines’ land is not closed but companies undertake renewable energy or afforestation projects, the land is transferred to other departments within the CIL body instead of being returned,” said Gupta.

In the case of Pathakhera, 11.52 hectares of forest land was returned to the State Forest Department, but the remaining land remains under WCL’s control. Without clear legislative provisions on the return/transfer of closed mine land, the issue remains unresolved.

The 2024 draft CBA amendment bill has a provision on transfer or return of land after it is no longer required by mining firms. This could have the potential to provide a framework for repurposing land and assets, and environmental remediation that could eventually provide livelihood opportunities and social protection to workers.

According to Kanchi Kohli, an independent legal and policy researcher, the bill’s inclusion of provisions for land transfers has the potential to reinstate community land rights extinguished during past acquisitions. However, she warns, “Making this possible will require a genuine intent to reinstate historically acquired rights and put them to socially useful projects.”

Role of international funding in just transition

India’s just transition policies remain top-down, lacking clear provisions to return land to communities or state governments for sustainable projects. Over 268,000 acres of land remain under the coal ministry.

In 2022, the then Union coal secretary Anil Jain had admitted that the existing closure plan was technical in nature and failed to address issues like the rehabilitation of labourers or the social impact of mine closure. He also emphasised the need to develop a mechanism to utilise the financial support that “may come” as part of climate finance.

Experts, on the other hand, argued that delays in land restoration stem from a lack of funds.

Developed countries that push for emission reductions under agreements like the Paris Accord should also provide financial and technological support for coal mine closures, says climate activist Harjeet Singh. “Right now, international climate discussions focus on mitigation, resilience, and loss-and-damage funds. But just transition is a separate category. If nothing has been done regarding coal mine closures in India, it’s because it requires additional funding.”

Singh emphasises that India must diversify its economy in coal-dependent states like Jharkhand and Odisha, a process that will require international financial assistance from the Global North.

This reporter reached out to the coal secretary for comment on the issues of scientific mine closure in the country. We will update this story when we receive a response.

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