Odisha's Coal Crisis : 6 Mines Expected to Close by 2030

Odisha’s Coal Mines Face Closure as Resources Deplete, Report Highlights Urgent Need for Land Reclamation

Bhubaneswar, Odisha : In a major development, coal resources in several Odisha mines are reported to be nearing exhaustion, prompting the closure of key coalfields in Anugul and Jharsuguda districts. According to recent data, three mines are already scheduled for shutdown due to the depletion of coal reserves. The state faces the possibility of six additional mine closures by 2030, with dwindling production across both open-cast and underground mines.

Report Highlights ‘Just Transition’ Need in Odisha’s Coal Sector

The International Forum for Environment, Sustainability, and Technology (iFOREST) recently published a report titled "Just Transition in Odisha for Green Growth and Green Jobs," warning of significant challenges as Odisha moves toward an energy transition. The study highlights the urgent need for sustainable measures to manage unutilized land post-mining and to facilitate a just transition for the workers and communities dependent on the coal industry.

The report outlines a severe issue: as coal reserves continue to deplete, large tracts of mine land are left unproductive. By 2030, approximately 11,000 hectares of land used for mining may remain unutilized, raising concerns over reclamation and rehabilitation.

Declining Production and Capacity Utilization

Currently, the state’s coal production is lagging significantly behind capacity. Odisha's annual production capacity stands at 352 million tons, yet only 235 million tons are being produced—a utilization rate of just 67%. As coal reserves diminish, mines are becoming less profitable. The Talcher mines in particular, including the Lingaraj, Ananta, and Jagannath fields, are expected to be depleted by 2040.

The iFOREST report underscores the economic inefficiency of further coal extraction from these aging mines, predicting a lack of investor interest in the future. With existing resources running out and India advancing its renewable energy goals, new coal projects may struggle to attract investment or be economically viable in the long term.

The Broader Implications for Odisha’s Economy and Workforce

Odisha holds a critical position as India’s largest coal-producing state, contributing 24% of the nation’s coal output. However, the state’s coal sector, which spans over 36,459 hectares, faces numerous challenges, from unproductive land to the impact on workforce sustainability. Mahanadi Coalfields Limited (MCL) and Coal India Limited (CIL) together produce over 206 million metric tons of coal annually, employing more than 40,500 workers. The Talcher block in Anugul district alone, which produces 121 million tons of coal annually, is now seeing only 57% of its workforce engaged in active mining, a figure that highlights the employment strain facing the industry.

A Call for Sustainable Land Reuse and Job Transition

With several mines in Anugul, Sundargarh, Jharsuguda, and Sambalpur districts on the brink of closure, the report calls for comprehensive land reclamation and sustainable reuse. The abandoned land, if properly reclaimed, could open new avenues for agriculture, afforestation, or renewable energy projects, addressing both environmental and economic concerns.

The future of Odisha’s coal sector appears to be at a critical juncture, as coal reserves diminish and India’s shift to renewable energy gains momentum. Experts emphasize that sustainable transition policies are essential to support the communities and workers dependent on coal production, making land reclamation and green job initiatives a priority for Odisha’s path forward.