Union Coal and Mines Minister G Kishan Reddy on Monday announced that the Centre has initiated a time-bound program for scientific mine closure, including the shutdown of long-abandoned and exhausted mines. Speaking at a press conference marking two-and-a-half years in charge of the ministry, Reddy revealed that approximately 147 mines have remained abandoned since Independence, and the government has commenced structured closure work with the aim of completing all closures by 2028.
Committees Formed for Oversight
Reddy stated that committees comprising village panchayats, local elected representatives, district collectors, and NGOs have been formed to oversee closure plans and determine post-mining land use. This collaborative approach ensures that local stakeholders are involved in the process, addressing environmental and community concerns.
Revolutionary Reforms in Coal Sector
The minister highlighted that the coal sector, which provides direct employment to about 5 lakh people and indirect employment to 25 lakh, has undergone revolutionary reforms over the past 12 years under Prime Minister Narendra Modi. Transparent systems have been put in place following Supreme Court directions on coal block allocation, leading to increased efficiency and accountability.
Coal Production and Stocks
Reddy noted that India achieved around one billion tonnes of coal production in the last fiscal year and the current year. Coal stocks across companies, transit routes, and power plants stand at approximately 189 million tonnes, sufficient for about 85 days of consumption. He emphasized that coal remains central to power generation and industries such as steel, cement, fertilizer, and chemicals.
Import Reduction and Infrastructure
Reduced coal imports resulted in foreign exchange savings of about ₹60,000 crore last year, and the government intends to cut imports further. The minister also highlighted first-mile connectivity projects and rail line expansion in coal-bearing regions to reduce truck movement, costs, and pollution.
Private Participation and Coal Gasification
On private participation, Reddy said coal blocks are now allocated through auctions with mandatory exploration, statutory clearances, and gram sabha processes, with the Centre supporting early operationalization. He announced a push for coal gasification, backed by incentives of ₹4,600 crore, and said roadshows are being held to attract investment.
National Critical Mineral Mission
Regarding mining, Reddy cited the National Critical Mineral Mission with an outlay of ₹3,200 crore, efforts through KABIL (Khanij Bidesh India Ltd) to secure overseas assets, duty waivers on 24 critical minerals, and stronger use of District Mineral Foundation funds for mining-affected areas.
