India’s growing energy appetite is driving a renewed reliance on coal, as renewable sources lag behind in meeting consumption demands. Coal India Ltd, the state-run coal producer, is reviving several defunct mines and initiating new projects to ensure energy security.
Coal India Ltd (CIL) is reopening 32 abandoned coal mines and planning to launch up to 5 greenfield projects this year. Chairman and Managing Director PM Prasad stated in an interview with Financial Times that the revival will be managed through revenue-sharing models with private firms. These mines, earlier deemed unviable due to outdated technology and manual operations, will now be upgraded to resume production.
At least 6 of the 32 mines are expected to begin operations in the financial year 2025–26. The initiative is part of the Coal Ministry’s policy announced in December 2024, targeting reduced dependence on coal imports and enhanced domestic supply.
So far in 2025, tenders have been awarded for 27 mines, with 5 more tenders expected to be finalised soon.
India’s energy consumption reached nearly 40.5 exajoules in 2023. The industrial sector accounted for 49% of the demand, followed by residential, transport, and other segments. With India's population and economy growing rapidly, primary energy demand is projected to more than double by 2050.
To meet this surge, the government is turning to reliable coal sources despite pushing clean energy agendas. Coal India currently operates 310 mines, supplying about 75% of India’s coal needs.
The company is targeting a 6–7% annual production growth, aiming for 1.5 billion tonnes by 2030.
Despite substantial investments, India’s clean energy infrastructure has not scaled fast enough. A $13 billion investment was made in renewables in 2024, but the annual requirement is estimated at $68 billion to achieve the 2030 goal of 500 GW from green sources, as reported by Ember.
As of 2024, coal remains the backbone of India’s power generation, contributing 74% of total electricity. Government projections foresee a gradual decline in this share, dropping to 55% by 2030 and 27% by 2047, yet coal remains a crucial transitional fuel.
Despite the coal revival, Coal India maintains its commitment to sustainability. PM Prasad stated that India will hit peak coal usage by 2035, aligning with its net-zero carbon target by 2070.
This position reflects the government’s dual objectives, ensuring immediate energy availability while steadily building a cleaner, sustainable infrastructure for the future.
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Coal India has identified 299 mines as closed, abandoned, or discontinued over the past decade. Of these, 130 mines ceased operations after 2009. Yet, the formal closure process has been sluggish. As of early 2025, only 3 mines have completed closure under official guidelines, even though 108 are marked for final closure and 20 for temporary closure.
The delays stem from administrative complexities, financial constraints, and the intricate land reclamation and environmental restoration procedures. In response, the Ministry of Coal has implemented revised closure guidelines and introduced a centralised digital portal to track closure progress and ensure regulatory compliance.
On June 9, 2025, Coal India share price opened at ₹400.90 on NSE, and was trading at ₹403.25 as of 1:10 PM.
Over the past week, Coal India Limited has increased 2.65%; over the past month, it has gained 1.96%; and over the past 3 months, it has seen a gain of 7.49%.
Coal India’s decision to revive 32 old mines and expand operations through new projects signals a temporary but strategic shift back to coal amid rising energy consumption and insufficient renewable infrastructure. While clean energy development continues, coal remains essential in meeting immediate power demands.
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Published on: Jun 9, 2025, 2:57 PM IST
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