India’s Stalled Coal Mine Closures: The Roadblocks to a Just Energy Transition

India’s coal mine closures have been progressing slowly, with only three mines officially shut down despite guidelines introduced 16 years ago. In January 2024, Coal India Limited (CIL) identified 299 mines for closure, yet by August, only eight had applied for it. Many of these mines remain abandoned or discontinued, leading to environmental damage and economic uncertainty for local communities. The closure process is both slow and expensive, causing many companies to abandon mines rather than complete proper rehabilitation. Additionally, government policies continue to extend mining leases, delaying land restoration and preventing affected communities from reclaiming their land.

Financial constraints further hinder mine closures, as companies struggle to fund necessary environmental restoration efforts. Instead of returning land to local communities, much of it is being repurposed for renewable energy projects, often excluding those most affected. The Coal Bearing Act (CBA) Amendment Bill of 2024 aims to facilitate land return, but its effectiveness depends on strong implementation. The Pathakhera No. 02 mine in Madhya Pradesh stands as a rare example of a completed closure, taking 13 years to achieve official certification.

Meanwhile, international funding is crucial for supporting India’s coal transition, particularly in coal-heavy states like Jharkhand and Odisha, where economic diversification remains a challenge. Without clear policies to ensure community land rights and financial aid for mine closures, India’s transition to clean energy will continue to be slow and inequitable.

India’s Stalled Coal Mine Closures: The Roadblocks to a Just Energy Transition

India’s efforts to close coal mines and transition to clean energy are progressing at a sluggish pace, creating challenges for both the environment and the millions of people reliant on the coal industry. Despite Coal India Limited (CIL) introducing guidelines for mine closures 16 years ago, only three mines have been officially shut down. In January 2024, CIL identified 299 mines for closure, but as of August, only eight had even applied, according to an RTI request. This slow progress is delaying India’s shift to renewable energy while leaving many communities in economic and environmental limbo.

Many of these mines are either “abandoned,” meaning they will not reopen, or “discontinued,” leaving the possibility of future mining. Proper mine closure is essential for a fair and sustainable transition to clean energy. It involves rehabilitating land, retraining workers, and creating new economic opportunities for the 21 million Indians dependent on the coal industry. However, most mines remain in a state of neglect—neither restored nor repurposed—causing environmental damage and economic uncertainty for local communities.

Challenges in Mine Closure

Of the 299 mines identified for closure, at least 28 have already exhausted their coal reserves but remain officially open. The process is slow, costly, and often disregarded by companies, which prefer to abandon mines rather than follow proper closure procedures. For instance, the Pathakhera No. 02 mine in Madhya Pradesh took 13 years to officially close after ceasing operations in 2011. Such delays leave workers unemployed for years and increase risks such as illegal mining and accidents.

Additionally, the government continues to extend mining leases for non-operational mines, raising concerns over land rights. Communities that lost their land to mining are not getting it back, despite promises of fair treatment under the just transition framework. This lack of action erodes trust and hinders progress toward a sustainable future.

Reasons for Delays in Mine Closures

CIL has repeatedly announced plans to shut down mines, with closure guidelines introduced in 2009 and revised in 2013, 2020, and 2025. Yet, only three mines—Pathakhera No. 01, Pathakhera No. 02, and Satpura No. 02 in Madhya Pradesh—have been fully closed. The closure process requires backfilling pits, removing waste, restoring soil, and replanting vegetation. Mining companies are required to deposit funds for this process into an escrow account, but financial constraints and government inaction have stalled progress. Experts argue that India lacks the financial infrastructure to support widespread mine closures and requires international funding to move forward.

Land Repurposing and Community Rights

Another pressing issue is the use of land from closed mines. Instead of returning it to local communities, the government is repurposing it for large-scale renewable energy projects like solar farms. While this aligns with India’s climate goals, experts warn that it could replicate the same power imbalances seen in the coal industry, where large corporations control resources while local communities are excluded. The proposed Coal Bearing Act (CBA) Amendment Bill of 2024 could address this by allowing the government to return land to communities. However, unless authorities prioritize fair land redistribution, this provision may have little impact.

The Pathakhera Mine Example

The Pathakhera No. 02 mine, which opened in 1970 and ceased operations in 2011, is one of the few successful closure cases. Spanning over 280 hectares, it underwent a comprehensive closure process, including sealing mine entrances, dismantling infrastructure, restoring soil, and planting vegetation. In October 2024, it officially received its closure certificate. However, despite this success, most closed or abandoned mines remain entangled in bureaucratic delays, with land often transferred to other government departments rather than being returned to local communities.

The Need for International Support

One of the major hurdles in India’s mine closure efforts is financial constraints. While international climate agreements push for emissions reductions, they do not provide adequate funding for coal mine closures. Climate activist Harjeet Singh emphasizes that developed nations, which demand faster climate action from countries like India, should also offer financial assistance to support a just transition. In coal-reliant states such as Jharkhand and Odisha, shifting away from coal will require significant economic diversification—something that may not be feasible without global financial aid.

The Road Ahead

Currently, approximately 268,000 acres of land remain under the control of the coal ministry. Without clear policies for returning this land to local communities, India’s transition away from coal will continue to be slow and inequitable. While the government has acknowledged the issue, concrete solutions—such as ensuring community ownership of land and securing international financial support—have yet to be fully implemented.

A just transition is not solely about shifting to clean energy—it is about correcting historical injustices and building a sustainable, fair future for affected communities. Without urgent action, India risks leaving millions behind in its push for a greener economy.