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Coal India to reopen 32 defunct mines via private partnership

Tuesday, 10 Jun 2025
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Coal India (CIL) is set to revive 32 previously defunct mines and initiate up to five new greenfield projects this financial year to address India’s widening energy gap. Chairman & Managing Director PM Prasad confirmed that mines once deemed unviable due to manual operations and outdated machinery will be reactivated via revenue-sharing agreements with private partners.

This refers to the Coal Ministry’s December 2024 policy to restore closed mines and curb coal imports. At least six of the 32 mines are expected to resume production in FY26, following tenders awarded for 27 mines so far, with five more under consideration.

India’s total energy consumption was about 40.5 exajoules in 2023—49 percent industrial, and the remainder across residential, transport, and other sectors. Coal still generates 74 percent of India’s electricity in 2024 and remains crucial as an interim fuel, though its share is projected to fall to 55 percent by 2030 and 27 percent by 2047.

CIL currently operates 310 mines, supplies 75 percent of domestic coal, and aims for six to seven percent annual production growth to reach 1.5 billion tonne by 2030.

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