The Central government has allocated ₹40,000 crore for scientific mine closures across the country, Union Coal Minister G. Kishan Reddy announced today with a reference to the government's commitment to sustainable mining practices and environmental restoration.
At a meeting on the future of India's mining industry, the Union Minister said the substantial allocation will be deployed to ensure that abandoned and exhausted mines are scientifically closed and that the ecological balance in mining areas is restored.
It will reduce environmental hazards, enhance public safety, and create sustainable land use opportunities after mining activities have ended.
Scientific mine closure is the process in which mined land is reclaimed by the mine owners, slopes are stabilized, water resources are managed to prevent damage, and vegetation can be restored.
India is moving towards a balanced economy, the Coal Minister said. Coal is still an important source of energy security for India, and the government is also going to ensure that mining practices take into account modern environmental standards.
The ₹40,000 crore allocation reflects the government’s long-term vision of making mining more sustainable. It is to be used to fund mine reclamation projects in several coal-rich states like Jharkhand, Odisha, Chhattisgarh, Madhya Pradesh, Telangana, and Maharashtra, where mining activities have been intensive for a number of years.
Researchers say scientific mine closures can reduce hazards from land subsidence, water pollution, dust emissions, and abandoned mine accidents. The restored mine sites can eventually be turned into forests, agricultural land, water reservoirs, solar parks, tourism destinations, or industrial zones as the need for them arises in a given region.
Mining companies are being advised through the Ministry of Coal to prepare long-term mine closure plans before mining begins. These plans entail environmental monitoring, rehabilitation, financial provisions, and land use planning at the end of mining. These will be enhanced with the new financial support for the implementation of these plans, the ministry said.
#WATCH | Delhi | Union Minister G Kishan Reddy says, "In the history of India, especially in the mining sector, a new chapter has begun. This mine closure programme was launched with an allocation of approximately ₹40,000 crore. On the directions of the Prime Minister, Shri… pic.twitter.com/0C9Q3oJYbf
— ANI (@ANI) July 22, 2026
The government has also been advocating the adoption of advanced technologies, including satellite monitoring, drone surveys, and Geographic Information Systems (GIS), to follow up on mine restoration activities. These technologies will help ensure transparency and compliance with environmental standards.
Industry experts welcomed the announcement, stating that scientific mine closure is necessary for sustainable development to be achieved and for India to maintain its energy production capacity. Timely rehabilitation of mined areas will not only improve biodiversity but will also reduce pollution and enhance the quality of life for the people living in those areas.
As India grows in the mining industry to meet increasing energy demand, scientific mine closure will be integral for sustainable resource management.
The ₹40,000 crore investment shows the government has a plan to prioritize environmental conservation alongside industrial growth, paving the way for a more sustainable future for the mining industry.
