Amid concerns over the environmental degradation, the Coal Ministry on January 8 announced modified guidelines for mines closure with stricter provisions that provide for reclamation work in a phased manner. Coal ministry said ‘mining is to be carried out in a phased manner initiating a forestation or reclamation work in the mined out area of the first phase while commencing the mining in the second phase i.e. continuation of mining activities from one phase to other indicating the sequence of operations depending on the geo-mining conditions of the mine’.
The government has also made it mandatory for all mine owners who are yet to obtain the approval of mine closure plan to procure it by January 2014 and has warned to take action against defaulters who fail to do work according to these mandatory norms. Under the norms mine owners would be required to undertake protective measures in the closure plans, including reclamation and rehabilitation works.
While, announcing the modified guidelines it also made it clear that now up to 80 percent of the total deposited amount including interest accrued in the escrow account may be released after every five years in line with the periodic examination of the closure plan. According to the modified guidelines, the amount released should be equal to expenditure incurred on the progressive mine closure in past five years or 80 percent whichever is less whereas, the balance amount would be released to the mine holder at the end of the final mine closure.
The government also added that in case of mines of government companies, their board has been delegated for approval of the mining closure plan, while in case of others; coal ministry has constituted a standing committee. Further, it said ‘compliance of all provisions of closure plan duly signed by the lessee to the effect that said closure of mine complied all statutory rules, regulations, orders made by the Central or State government, statutory organizations, court etc., duly certified by the Coal Controller’.
Earlier, the coal ministry in May last year, had made it mandatory for mine owners to open escrow accounts with scheduled banks and the coal controller's organization (CCO) as an exclusive beneficiary.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: