Coal mine closure plans and eco-restoration: a practical guide

7 October 2026 5 min read Grow Billion Trees team

Every coal mine in India must have an approved mine closure plan with a progressive part and a final part. Ministry of Coal guidelines date from 2009 and were revised in 2013 and 2020. They tie physical and biological reclamation to an escrow account, five-yearly reviews and a closure certificate. Plantation that survives is the most visible proof of biological reclamation.

Mine closure used to happen at the end of a mine's life, often badly. The Ministry of Coal's January 2024 release admits that older closures were "uncontrolled", with equipment abandoned and sites neglected.

The current approach spreads closure across the whole life of the mine. This guide explains what the plan contains, how the money works and where eco-restoration fits.

What does a coal mine closure plan contain?

The 2013 guidelines require a progressive closure plan for every five years of mining and a final closure plan for the end of mine life. Both are approved along with the mining plan or project report.

The plan covers these heads:

Mined-out land: physical and biological reclamation, and the post-mining land use.
Water: protection of surface and groundwater, erosion and siltation control, acid mine drainage treatment where relevant.
Air quality: current levels and corrective measures.
Waste: overburden and rejects, dump stability, and concurrent reclamation and afforestation "as far as possible".
Topsoil: how site topsoil is stored and reused.
Coal rejects and slurry ponds: benched, graded and reclaimed biologically at the end of operations.
Infrastructure, machinery and safety: what stays, what is dismantled, and fencing of openings.
Socio-economic effects: local employment, compensation and what the community expects after closure.

The guidelines also ask for phased mining: afforestation starts on the mined-out area of the first phase while mining moves to the second.

How does the escrow money work?

Closure is backed by money set aside from the start. The 2013 guidelines set out the mechanism below.

Item	What the 2013 guidelines say
Closure cost basis	₹6 lakh per hectare of total project area for opencast mines and ₹1 lakh per hectare for underground mines, at August 2009 prices, revised with the wholesale price index
Annual deposit	Total cost divided by mine life, deposited every year into an escrow account with the Coal Controller as beneficiary, compounded at 5% a year
Release during mining	Up to 80% of the deposit and interest every five years, equal to actual progressive closure spending or 80%, whichever is less
Yearly report	Submitted to the Coal Controller before 1 July, setting out protective and rehabilitation work done
Final release	Balance released after a closure certificate confirms the work matches the approved plan
Default	Coal Controller may forfeit the amount after at least 30 days' written notice

The guidelines were revised again in 2020. Check the current rates and procedure with the Coal Controller's Organisation before you budget.

Who checks the reclamation?

Progressive closure plans are examined every five years. They are also subject to third-party monitoring by approved agencies such as CMPDI, NEERI and ISM.

The Ministry of Coal also uses satellite-based monitoring of progressive reclamation across coalfields. CMPDI has built a portal to track closure activities, including reclamation, post-closure air and water quality, and land repurposing.

What about old and abandoned mines?

Mines closed before 2009 often had no structured closure. In October 2022 the ministry issued guidelines for these mines, grouping them as discontinued, abandoned or closed.

Coal India identified 169 pre-2009 and 130 post-2009 mines in these categories, according to PIB (January 2024). Final and temporary closure plans are being prepared for them, which means a large pipeline of restoration work.

Where does eco-restoration fit?

Biological reclamation is not just "plant trees on the dump". The end land use should be decided early, because it changes the design.

Post-mining use	What the plantation looks like
Native forest	Layered native species, ground cover, wildlife corridors to nearby forest
Eco-park or tourism site	Shade avenues, native blocks, grassland and water edges; see eco-parks in coalfields
Water body in the final void	The 2013 guidelines allow left-out voids to fill with water; bank planting controls erosion (lake restoration)
Community land use	Fruit and timber trees with farmers, where land returns to local use; see community agroforestry

What evidence supports an escrow release?

Release depends on showing that progressive work matches the plan. Reviewers trust records they can check on the ground.

Maps of each reclaimed block, with area and planting date.
Geo-tagged records for planted saplings and yearly survival counts.
Photos from fixed points, taken each season.
Satellite or drone imagery showing canopy change over time.
Soil and water test results where the plan requires them.

Our monitoring guide explains how to build this record.

How Grow Billion Trees helps

We plan and carry out the biological part of closure. That covers dump and backfill planting, slurry pond and reject area greening, and void-edge planting. We care for trees for three years and report on GreenTrack, with 85% survival across our programmes. Work is priced per project after a site survey. Start from the coal mining hub or plan a programme.

Further reading: Mine reclamation under MCDR: progressive mine closure plans · Monitoring mine reclamation: satellite, geo-tagging and reporting

Frequently Asked Questions

Is a mine closure plan mandatory for every coal mine?

Yes. The Ministry of Coal guidelines say all coal mine owners must adopt a closure plan with progressive and final parts, approved by the competent authority.

How often is the progressive closure plan reviewed?

The 2013 guidelines say it is prepared for every five years of mining and examined every five years, with third-party monitoring.

Can escrow money be released before the mine closes?

Under the 2013 guidelines, up to 80% of the deposit and interest can be released every five years, limited to actual progressive closure spending.

Does plantation count as biological reclamation?

Yes, when it is on mined-out land, backfill or dumps as the plan specifies. The guidelines list plantation and biological reclamation of left-out dumps as closure cost items.