Mine closure opens opportunities in circular economy but needs coordinated efforts
The Indian government has allocated a ₹40,000-crore corpus to transition from an 'extract-and-abandon' mining model to a circular economy. This initiative focuses on ecological restoration, community development, and creating green employment opportunities in regions where mining operations have concluded.
Why it matters
It represents a significant shift in national industrial policy toward sustainable development and long-term environmental accountability in the coal sector.
The ₹40,000-crore mine closure corpus , which the Union government has earmarked, signals a beginning of new economic lifecycle, wherein future generations inherit thriving ecosystems.
Abandoning an ecologically insensitive ‘extract-and-abandon’ model, India, the second largest producer of coal in the world, has chosen a path of circular economy, implying diversified local economies; even as details are sketchy on the detailed breakup of corpus’ deployment, although the government officially announced a 25% allocation for the community development.
The closure— a planned, people-centric process or PPP (not to be confused with public private partnership)— plans to unlock a new green services industry; improve environmental, social and governance (ESG) performance; convert exhausted mines into productive and tourism assets; support India’s voluntary carbon market (VCM); help local micro, small and medium enterprises (MSMEs) and rural enterprises; and generate rural green employment.
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