The government of India has initiated a major push to resurrect long-dormant coal assets: revival work has begun on 28 of 32 abandoned coal mines, according to a recent statement in Parliament by the Union Coal and Mines Minister. The remaining four mines are currently undergoing re-tendering.
In what is being described as a significant step in energizing India’s coal sector and addressing energy demand, the minister informed the Lok Sabha that production has already resumed at two of the revived mines during the 2025–26 financial year.
Over the past five years, the government has auctioned 133 coal mines, as part of a broader reform strategy to unlock the potential of coal resources previously left idle. These mines — once fully operational — are projected to deliver substantial economic benefits. The forecast includes an estimated annual revenue of ₹38,710 crore and expected capital investments amounting to ₹41,407 crore. Perhaps most notably, these revived and auctioned mines are expected to generate employment for around 373,199 individuals.
Reactivating abandoned coal mines, many of which had been shut down due to various economic or operational factors, has long been a goal of the government’s energy and mineral-resource strategy. Experts say that such a revival not only strengthens domestic coal output — reducing reliance on imports — but also supports regional economies by creating direct and indirect employment in mining zones. In past years, a broader push led by the coal ministry has focused on handing over closed or unproductive mines to private mining firms for redevelopment and reopening.
The successful reopening of even a couple of mines in the 2025–26 fiscal year signals momentum. That said, the full impact will depend on how swiftly the remaining mines transition from tendering or redevelopment phases to active coal production, and how efficiently operations are managed.
For communities around these mining zones, the revival could mean a return of livelihood opportunities — particularly in regions where the closure of mines had led to economic distress. At the same time, increased production may help ensure more stable coal supply for industries and power plants across the country, potentially improving energy security.
However, the rollout also poses challenges. Ensuring safe mining practices, preventing environmental degradation, securing land and rehabilitation rights for local populations, and maintaining transparency in the re-tendering and operational phases will be critical. Without responsible management, reviving old mines — many of which may have outdated infrastructure or environmental liabilities — could lead to the same problems