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REPORT OF THE INTER-MINISTERIAL COMMITTEE ON
JUST TRANSITION FROM COAL
Under Sustainable Growth Pillar
of India-US Strategic Clean Energy Partnership iii
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
Sl. No.Name and designationRole
1. Sh. BP Pati, Joint Secretary, Ministry of Coal Chairman
2. Sh. PN Sharma, Controller of Mines, Indian Bureau
of Mines
Member
3. Sh. Narayan Dash, ED (Safety), Coal India Ltd Member
4. Sh. Om Kant Shukla, Director, TETD Div., Central
Electricity Authority
Member
5. Sh. Jagdish Prasad Verma, Director of Mines
Safety (Mechanical), Directorate General of Mines
Safety
Member
6. Sh. Abhijit Sinha, GM (Env), Central Mine Planning
and Design Institute
Member
7. Prof Biswajit Paul, IIT (ISM), Dhanbad Member
8. Sh. Ashok Srinivas, Prayas (Energy Group) Member
9. Ms Apurva Chaturvedi, Sr Clean Energy Specialist,
USAID/India
Member
10.Mr Leon Clarke, Professor, University of Maryland Member
11.Ms Bethany Speer, Group Manager, National
Renewable Energy Laboratory
Member
12. Mr. Nikit Abhyankar, Scientist, Lawrence Berkely
National Laboratory
Member
13.Mr Alex Wood, Director, Department of Energy,
USA
Member
14.Sh. Kamil KPS Bhullar, Research Officer, NITI
Aayog
Member Convenor
COMPOSITION OF THE
COMMITTEE ON JUST
TRANSITION FROM COAL iv
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
Terms of Reference
i. The committee will develop actionable policy brief for India for the coal
sector, which includes design and testing of policy frameworks that would
offer economic opportunities from clean energy value chains to communities
negatively impacted by the declining use of coal.
ii. The committee will carry out a detailed analysis of stranded coal assets and
human-centric approach to energy transition in India including assessment
of current projects in the pipeline, role of coal in deep decarbonization
scenarios, health impacts of coal transitions.
iii. The committee will explore regional collaboration and strategies, including,
sub-national engagements between coal rich US and Indian states can help
in sharing best practices on how the states are dealing with decreasing
dependence on coal.
Composition of the Committee on Just Transition from CoalReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
iv v
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
FOREWORD CONTENTS Committee on Just Transition from Coal iii
Foreword v
1. Background 1
2. Introduction 2
3. Key Issues to be Addressed 4
4. Pre-requisites to Enable a Just Transition 6
5. Proposed Action and Implementation Framework 8
5.1. Institutional architecture to enable implementation of
just transition framework 8
5.2. Action and implementation framework 10
6. Conclusions and Next Steps 14
Annexure 16 1. BACKGROUND Report of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
1
In a meeting of Sustainable Growth Pillar held on 12
th
July 2021 under India-US
Strategic Partnership, it was decided to enhance cooperation in the fields of
Energy Data Management, Low Carbon Technologies, Carbon Market & Just
Transition in Coal Sector and form four committees involving Indian and US
counterparts in respective fields.
Accordingly, the committee on Just Transition in Coal Sector involving 18 members
from India and US was constituted with following terms of reference:
i. To develop actionable policy brief for India for the coal sector that
includes design and testing of policy frameworks that would offer
economic opportunities from clean energy value chains to communities
negatively impacted by the declining use of coal.
ii. To carry out detailed analysis of stranded coal assets and human-centric
approach to energy transition in India including assessment of current
projects in the pipeline, role of coal in deep decarbonization scenarios,
health impacts of coal transitions.
iii. To explore regional collaboration and strategies, including, subnational
engagements between coal rich US and Indian states can help in sharing
best practices on how the states are dealing with decreasing dependence
on coal.
Based on the discussions held and inputs received from various committee
members, the present report on Just Transition in Coal Sector has been prepared. 2. INTRODUCTIONReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
2
India is the second largest consumer of coal and coal has hitherto played a
crucial role in India’s energy sector, accounting for 55% of the country’s energy
needs and over 75% of its electricity needs. In addition, coal is also a vital
ingredient and energy source in production of many important material/products
viz. Steel, Cement, Fertilizer, Paper etc. With significant availability of indigenous
coal reserves and its affordability, coal is likely to continue as primary source of
energy for a considerable period of time to meet the developmental needs of
rising economy.
Although in line with NDC goals and commitments made in its Panchamrit
declaration at COP 26, India will push for renewable/non-fossil based energy, but
share of coal in the energy basket is going to remain significant in foreseeable
future. Coal demand is yet to peak. The draft Economic Survey 2021-22 projects
coal demand in the range of 1.3-1.5 billion tonnes by 2030, an increase of
63 per cent from the current demand. As per one of the assessments of NITI
Aayog, although there may be 10 % drop in share of Coal in Primary energy supply
in 2035 (BAU) but quantum of coal demand may rise 1.40 time due to increased
energy demand driven by rising economy. The IEA also estimates that the share of
coal in the overall energy mix steadily declines to 34% in 2040; however, overall
demand for coal still remains stronger to meet the rising energy demand of
rapidly developing economy. So, any coal transition and related activities are not
envisaged both in short and medium term. Rather, new coal mines are going to be
open in future to meet the energy and coal demand, which includes consolidation
in favour of big mines. Also, there would be significant coal demand for projected
adoption of clean coal technologies such as coal gasification, coal liquefaction
etc. Given this, NITI Aayog has set up an expert group to look at coal demand
and guide investments in the coal sector.
In such a situation, coal consumption in the country is likely to peak somewhere
between 2035 and 2040 and may undergo gradual tapering thereafter. This may
result in phase-wise measured closure of mines – starting from low capacity mines
requiring closure on just transition principles. Besides, coal mines will also close 2. IntroductionReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
3
down in the intervening period due to exhaustion of reserves, safety problems,
viability issues etc., requiring proper closure to ensure that there is no loss of
income for people dependent on these mines.
In order to ensure that livelihood of people dependent on coal mines, coal
washeries etc., (collectively referred to as an ‘asset’ or a ‘coal-based asset’
henceforth) and connected community services are sustained post closure, we
need to frame a policy and start capacity building right from now to ensure that
coal assets are closed seamlessly on principles of just transition. This will enable
coal sector developing a comprehensive mine closure framework and robust
capacity for implementing mine closure practices on principles of just transition
in coal sector by the time tapering of coal demand starts in the long run.
The coal sector is deeply interconnected, not only to other sectors, but also to
the local communities. Coal bearing regions have been subsumed into mainly
monoculture societies centred around coal mining and its use. This has led to
heavy economic and social dependence on the coal sector, with it affecting
livelihoods, infrastructure, environmental conditions, state revenues, and quality
of life in these regions. Coal in India occurs in states which are economically
disadvantaged. People derive some sort of earning directly from mining activities
in such areas and indirectly from allied activities.
Thus, the closure of coal-based assets, while an integral part of the transition
in the long run, is going to be disruptive to the sector in general and the local
communities in particular. But it also provides an avenue to address existing
development challenges and provide better opportunities to the concerned
communities. It also provides opportunities for reimagining development in
these regions, focusing not only on addressing the challenges but also meeting
aspirations of the affected communities. Strategising and high-level planning for
such reimagined development should happen in a comprehensive manner, across
interconnected sectors, at the regional/district level. The rollout, however, will
occur at the local/community/asset specific level.
To address these complex and inter sectoral issues, the committee proposes
a multi-level action and implementation framework with an aim to build a
firm base and capacity to enable seamless handling of closure of coal-based
assets happening in long term in a just manner. Toward this end, the suggested
framework aims to address the key challenges brought about by the closure of
coal-based assets, listed in Section 3. The following section, Section 4, outlines
some pre-requisites to enable closure of coal assets on principles of just transition
based on the action and implementation framework, proposed in Section 5.
Section 6 concludes the report with a summary of the proposed action items
and next steps. 3. KEY ISSUES
TO BE ADDRESSEDReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
4
i. Livelihoods: The coal sector provides employment to many people
in coal bearing areas, either directly through mining companies, or
indirectly through contractors used by the mining companies. People
are also employed downstream in the coal value chain, for instance in
coal transport services. In addition, many aspects of the local economy
are directly or indirectly supported by coal. Closure of coal mines would
impact local economies, cause the loss of formal and informal jobs, and
affect small enterprises. Any strategy for promoting just transition must
address this challenge, and include development of alternate options for
employment, such as retraining and reskilling of affected populations,
restoration of traditional livelihoods, and identifying new employment
and entrepreneurship opportunities
1
.
ii. Community health: Communities living in coal regions are provided
facilities of medical care through the hospitals/dispensaries run by coal
companies. The mine closure framework should ensure that such facilities
are continued in some way in post closure period. Also, the entire mining
area should be closed in a manner to ensure that the water and air
regime is free from any harmful contaminant and land area is stabilized
in environmentally sustainable manner.
iii. Physical and social infrastructure: Often, in coal bearing regions, there is
lack of sufficient public infrastructure, and poor access to education and
clean drinking water. Public sector entities (such as Coal India Ltd.) are
known to set up infrastructure in these regions and provide access to
these amenities. For instance, schools, hospitals and roads set up by the
mining company is used by the local community. The community may
also be supplied with water for domestic and irrigation purposes. The
framework/policy need to ensure that such social & physical infrastructure
is sustained post closure.
1 Post closure assets could be redeveloped or used to promote livelihood options that are appropriate
to the region and consistent with the regional development priorities. For example, livelihood options
such as fisheries, tourism enterprises, agro-based or other industries etc. could be developed. 3. Key Issuesto be AddressedReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
5
iv. Repurposing of resources: The coal economy has significant impacts on
natural resources such as land, water, and air. Coal mining, particularly
the nationally predominant open cast mining, changes the land form
by creating large pits and overburden mounds. Loss of forests and
biodiversity is also seen with coal-related projects. Redressal of these
impacts on the local environment is a challenge that must be dealt
with as part of coal mine closure. Additionally, in some cases, it may be
possible to repurpose the natural and physical assets to aid in the area’s
redevelopment. Such options should be explored, while also addressing
issues regarding the ownership of such assets.
v. Public Finance: Coal mining and associated activities contribute
significantly to the state revenue in coal bearing states. This contribution
includes revenue from royalties on mining, District Mineral Fund
contributions, and share of GST. The loss of such revenue could impact
existing state finances and public spending, and worsen regional inequities.
This aspect need to be considered in the policy for just transition.
For effective implementation of a just transition framework, the required
preliminary actions are outlined in Section 4. Supported by these enabling actions,
the action and implementation framework suggested in Section 5 proposes a
comprehensive, consultative, evolving and proactive approach to address the key
issues outlined in this Section. 4. PRE-REQUISITES
TO ENABLE A
JUST TRANSITIONReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
6
i. Coal Transition Policy: Given the complexity and long duration of the
transition, a well-defined policy framework will be required. This will
provide the necessary administrative and legal backing to the proposed
actions. It is recommended that the Centre should develop a coal just
transition policy along the lines suggested in Section 5. This policy should
be finalised after adequate consultations with relevant stakeholders
(in particular, the concerned states) and providing the general public an
opportunity to comment on the policy. The policy should be periodically
(say, every five years) revisited and refined based on gathered experience.
ii. Regional development framework: Coal-bearing states should prepare
a broad framework and plan for a post closure future in these regions,
based on consultations with the local communities. This framework can
guide asset-specific redevelopment plans.
iii. Geospatial survey of coal bearing areas: In order to understand the
extent of assets being dealt with, and the ground reality regarding the
landscape, a detailed geospatial survey of coal bearing regions could be
carried out to prepare a roadmap for coal mine closure.
iv. Financing: The transition is likely to require significant financial resources
(e.g., for ecological restoration in legacy mines, developing new employment
opportunities, industries, reskilling and retraining etc.). Moreover, the
coal mine closures in short and long term is likely to adversely affect
the finances of coal bearing regions that are already typically resource-
starved. Therefore, the Centre should support the just transition process
in coal mines by providing requisite financial assistance beyond the means
of the project proponent and the concerned state government. Towards
this end, a dedicated non-lapsable “Green Energy Transition India Fund”
could be established for the explicit purpose of aiding communities,
regions and states to chart an alternative development path. Resources
for such fund may be raised from various sources such as international 4. Pre-requisites to Enable a Just TransitionReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
7
sources (climate finance), issuance of bonds, special levies or cesses, fines
collected from polluters, existing resources such as DMF, NMET, Clean
Energy Cess and so on. A well-defined mechanism for utilisation of such
funds should also be developed to ensure accountability of funds usage.
The above enabling steps can provide the necessary support to ensure the
effective implementation of the framework proposed in Section 5. 5. PROPOSED ACTION
AND IMPLEMENTATION
FRAMEWORKReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
8
The proposed framework aims to address the key issues identified in Section 3
and enable the closure of coal mines, both in short and long term on just transition
principles.
As seen in Section 3, the challenges associated with the gradual transition
are complex and multi-dimensional. The solutions to effectively address them
are likely to be equally complex and require a lot of analysis, deliberation and
consultation. The efficacy of proposed solutions, however, is dependent on their
implementation.
Towards a just, timely, and accountable transition, the closure of coal-based assets
must be planned and in adherence to stipulated procedures/policy, which requires
a robust institutional architecture. The committee proposes a three-tier Task Force
as the institutional architecture to enable just transition in coal sector happening
in long term, as detailed in sub section 5.1.
5.1. Institutional architecture to enable implementation of just
transition framework
Tier 1Tier 2Tier 3
• Members: Chaired by
MoC, representatives
from relevant Central
ministries, non-govt
experts from relevant
sectors.
• Role: Oversee
Responsible to ensure
just transition. Financial
ascpect of it also.
• Constituted for each
coal bearing state.
• Members: representa-
tives from state govt,
coal companies, and
civil society.
• Role: Develop and
oversee regional
development
framework, align
specific asset closure
to broader regional
policy.
• Constituted by Tier 2 for
each asset being closed.
• Members: representa-
tives from afected local
communities, district
authorities and project
staf.
• Role: Develop and
implement closure plans
with public consultations
and inclusive of
concerns, aspirations of
communities and
monitor implementation.
Just Transition Task Force
Figure 1: Institutional framework to enable a just transition 5. Proposed Action and Implementation FrameworkReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
9
i. Tier 1, instituted at the central level, should be chaired by the Ministry
of Coal (MoC) and consists of representatives from relevant ministries of
the Central government, including ministries related to rural development,
agriculture, human resources development, environment, etc. It should
also include experts from outside the government with experience in
relevant sectors such as coal, human development, and environment.
This tier has the broad role of ensuring just transition in the process of
coal mine closure, and is responsible for setting guidelines and good
practices inthe process. It should ensure convergence and alignment with
existing national policies and programmes, such as MGNREGA, NRHM and
NRLM, with the Just Transition policy of coal sector. Its responsibilities
also include aspects such as tracking upcoming asset closures, tracking
progress of on going asset closures, providing technical and financial
assistance as needed, etc. In order to do so, it can convene meetings
with relevant members of other tiers, and develop a coordinated strategy
for operationalising the suggested framework and to encourage cross-
learning across states and assets. Tier 1 should be constituted soon after
the Just Transition Policy for coal sector is finalised by the Government.
ii. Tier 2, instituted at the state level for each coal bearing state, consists of
representatives from the corresponding state government, representative
from coal companies operating in the State, labour representatives
and transition experts from civil society in relevant areas. This tier is
responsible for ensuring that the state’s concerns (such as employment,
revenue, repurposing of resources, etc.) are addressed. In addition to
overseeing the plans for each asset closure in that state, Tier 2 is also
responsible for developing the regional development framework to
include broader regional actions to enable closure of coal mines with
just transition principles. This includes providing the necessary skill-
development or reskilling, running entrepreneurship programmes, coming
up with appropriate industrial policies etc. Tracking and addressing the
loss of state revenue from such asset closures also falls under the purview
of this tier. Tier 2 is also responsible for aligning existing state policies
(related to employment, entrepreneurship, resource repurposing, etc.) and
asset-specific closure plans with the regional development framework.
Tier 2 should be constituted soon after the Just Transition Policy for coal
sector is finalised by the Government.
Tier 3 will be constituted by Tier 2 for each asset being closed. They
should be constituted at least 4 years before the asset is closed, so
that a consultative asset-specific redevelopment and repurposing plan
as detailed in Section 5.2 can be completed before the asset closure. 5. Proposed Action and Implementation FrameworkReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
10
iii. Tier 3 consists of representatives from the affected local communities,
representatives from the project staff and corresponding district
administration and agencies. This tier is mandated to develop and
implement the redevelopment and repurposing plan (as suggested
in Section 5.2) for each asset that is being closed, based on public
consultations. This tier is responsible for ensuring that the concerns
and aspirations of the community are captured in the framework
for the specific asset closure, and its implementation. If local district
administrations do not have the requisite capacity for this, they should
be strengthened accordingly. Tier 3 may also hire external consultants
to assist them with their tasks but the responsibility remains with them.
The lifetime of Tier 3 is based on the particular asset’s closure plan.
The proposed Task Force should be constituted with sufficient expertise and
capacity to fulfil its mandate. Moreover, it should have a dedicated, functional,
publicly accessible website, where details of all the Task Force members are kept
up to date. This website should also become the repository for all the reports
and plans related to coal asset closure, and should be kept regularly updated.
Towards ensuring accountability and accessibility, the reports uploaded on the
website should also be available in local languages.
The tiers of this Task Force, individually and jointly, are responsible for the effective
implementation of the framework suggested in sub section 5.2.
5.2. Action and implementation framework
i. Prepare and publish an annual report on planned coal-based asset
closures: While some details regarding mine closures are currently
reported in various sources, we recommend that such reporting is
mandated and streamlined. A detailed list of coal mines, washeries, and
other assets that are due to be decommissioned should be prepared and
made available on an annual basis. This report should be published by a
pre-determined date every year (for example, Dec 31st) and should list
coal-based assets up for decommissioning/retirement/closure over the
next five year period. (For instance, if the first such report is published
in Dec 2022, it should contain information of closures in FY 2023-24,
FY 2024-25, FY 2025-26, FY 2026-27, and FY2027-28). This should
provide sufficient advance notice and give a window to undertake the
steps required to take up the closure on principles of just transition.
For coal mines and washeries, in addition to project information (name,
location, peak rated capacity etc.), the report should carry details
regarding the proposed date of closure, amount deposited in escrow
account for closure, and a link to the progressive and final mine closure 5. Proposed Action and Implementation FrameworkReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
11
plan (and any monitoring reports of the same). Some of this information
may be available in the mine closure plan, and can be reused from there.
The Coal Controller’s Organisation (CCO) should compile this report on
an annual basis and make the same available to the public on their
website and share it with the Task Force for publication on its website
before the pre-determined date.
Tier 1 of the proposed Task Force should ensure that these reports get
published annually, and CCO are held accountable for it.
ii. Prepare an asset-specific redevelopment and repurposing plan based
on wide-spread consultations: As established in earlier sections, coal-
based assets are deeply interlinked with local communities. Given that the
closure of these projects is going to particularly impact them, strategies
for project closure, and the way forward, must include perspectives from
community stakeholders. Toward this end, for each coal-based asset that
is to be closed, a redevelopment and repurposing plan must be prepared
and got approved from Tier 2 level Task Force at least 3 years prior
to the expected date of closure. The plan must include strategies to
address the impact the coal sector has had on the livelihoods, community
health, infrastructure, natural resources, and public finance (elaborated
in Section 3) in that region. The redevelopment and repurposing plan
should:
a. be developed based on public consultations with all affected parties
and communities
b. be broadly consistent with any regional or district level development
plans
c. include year-wise strategy (From 3 years before closure of asset till
the year of hand over of the site after closure of site in all respects)
and action plan to address the challenges of livelihood loss, impact
on community health, physical and social infrastructure, repurposing
of resources, and impact on public finances (key issues listed in
Section 3)
d. include details on operationalising and financing of the plans each
year
e. include the provisions made in the existing mine closure plan of
coal asset
At present, mine closure for all the projects, including provisions for
an escrow fund, has been planned and mine closure plan (MCP) for
every project has been approved. This has been done as per Mine
Closure Guidelines, 2013. The MCP is now merged with the mine plan 5. Proposed Action and Implementation FrameworkReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
12
and guidelines to this effect has been issued vide OM dated 29
th
May,
2020 from MoC. A mine closure status report has also been prepared
for mines that were closed prior to issuance of MCP Guidelines, 2009.
The mine closure plan and guidelines issued by MoC vide OM dated
29th May 2020 (and its earlier variants) include some technical, financial,
social and environmental aspects of asset closure. The redevelopment
and repurposing plan may borrow from the mine closure plan for all
overlapping issues in consonance with the views of the local communities.
The Ministry may also consider revising the mine closure guidelines to
include some of these aspects.
The responsibility for preparing such a plan is with Tier 3, based on
guidance from Tiers 1 and 2. The funding for developing such a plan must
come from the project proponent (whose asset is being closed) and the
State and Central government. Creation of a special fund at Centre has
already been proposed earlier. Part of DMF fund may also be allocated
for the purpose.
For each asset closure, Tier 2 of the Task Force must constitute and
oversee Tier 3, which should prepare the redevelopment and repurposing
plan for the asset and should ensure that the plan is made after following
due consultative process and is published on the Task Force website
before the closure of the asset. They can seek assistance from Tier 1
and Tier 2 in this regard. Tier 1 and Tier 2 may get a standard template
developed for preparation of redevelopment and repurposing plan.
After closure of the asset, Tier 3 or an agency appointed by Tier 3 should
ensure that the asset closure activities are undertaken in accordance
with the detailed phase-wise plans and timelines chalked out in the
redevelopment and repurposing plan.
iii. Prepare an annual monitoring and oversight report after closure:
In order to ensure that the closure is progressing as stipulated in the
redevelopment and repurposing plan, Tier 3 or the agency appointed
by Tier 3 for implementing the redevelopment and repurposing plan
should produce an annual report. This report should track the progress
of closure implementation in accordance with the redevelopment and
repurposing plan, regarding all the key issues listed in Section 3. It
shouldbe vetted and approved by Tier 2 of the Task Force. This annual
progress report should be made available publicly on the website of the
Task Force. These measures will ensure public accountability for timely
and proper implementation of the redevelopment and repurposing plan.
Tier 3 should remain active and in-force until the entire redevelopment
and repurposing plan is implemented and the various tiers of the task-
force have signed off on its successful implementation. 5. Proposed Action and Implementation FrameworkReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
13
A schematic diagram of the action and implementation framework is illustrated
in figure 4.
Scope: National
Implemented by: CEA (TPP),
CCO (coal mines)
Overseen by: Tier 1
Scope: Asset-specific
Implemented by: Tier 3
Overseen by: Tier 1, 2 and 3
Scope: Asset-specific
Implemented by: Tier 3
Overseen by: Tier 2 and 3
Scope: Asset-specific
Implemented by: Tier 3
Overseen by: Task Force
Declared
retirement is
captured in
Annual closure
report
Redevelopment &
repurposing plan
is prepared with
year-on-year plans
post closure
Project closure
is carried out as per
redevelopment
& repurposing
plan
Monitoring
report is
prepared for
each year after
the closure to
track progress
Figure 2: Action and implementation framework 6. CONCLUSIONS
AND NEXT STEPS
Report of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
14
While the transition away from coal is going to be set over a multi-decadal time
frame, some coal mines may close down due to exhaustion of reserves, safety
reasons and viability issues. As discussed earlier, such mine closures happening in
short term and closures happening in long term due to tapering of coal demand
will have impact on the livelihood of local community and also on the economy
of coal regions and will present social disruptions, challenges, and opportunities.
In order to handle the mine closures happening in long term and also ensure
that the long term transition does not take place in an ad hoc fashion, and the
affected communities concerns and aspirations are addressed, it is crucial to
have a comprehensive mine closure framework, a robust plan and policy in place.
Toward this end, the Committee recommends the adoption of the framework
suggested in this document. Broadly, this consists of the following steps:
i. Developing a just transition policy for handling closure of coal mines
based on the suggested action and implementation framework and
undertaking the associated enabling actions
ii. Identifying sources of funds to support the said just transition, and
developing guidelines for utilisation of such funds to enable the envisaged
just transition along the lines proposed
iii. Setting up a three-tiered Task Force that will be responsible for the
operationalisation of the proposed just transition policy
iv. Ensuring closure related activities are carried out in accordance with the
stipulated policy
v. Developing redevelopment and repurposing plans for each coal asset
closure with extensive involvement and consultation with local communities
vi. Making all information (reports, data etc.) publicly available to enhance
accountability, and transparency 6. Conclusions and Next Steps
Report of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
15
An institutional and operational architecture as recommended would help India
navigate the challenge of coal mine closures that may happen in short and long
term, as deliberated earlier, in a just manner that utilises it as an opportunity to
enhance the lives of communities currently dependent on and affected by coal
directly or indirectly. ANNEXURE
Report of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
16
307742/2021/ENERGY
1 AnnexureReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
17
307742/2021/ENERGY
2 AnnexureReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
18
307742/2021/ENERGY
3 NOTES
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........................................................................................................................................................................................................................ www.niti.gov.in
REPORT OF THE INTER-MINISTERIAL COMMITTEE ON
JUST TRANSITION FROM COAL
Under Sustainable Growth Pillar
of India-US Strategic Clean Energy Partnership
REPORT OF THE INTER-MINISTERIAL COMMITTEE ON
JUST TRANSITION FROM COAL
Under Sustainable Growth Pillar
of India-US Strategic Clean Energy Partnership iii
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
Sl. No.Name and designationRole
1. Sh. BP Pati, Joint Secretary, Ministry of Coal Chairman
2. Sh. PN Sharma, Controller of Mines, Indian Bureau
of Mines
Member
3. Sh. Narayan Dash, ED (Safety), Coal India Ltd Member
4. Sh. Om Kant Shukla, Director, TETD Div., Central
Electricity Authority
Member
5. Sh. Jagdish Prasad Verma, Director of Mines
Safety (Mechanical), Directorate General of Mines
Safety
Member
6. Sh. Abhijit Sinha, GM (Env), Central Mine Planning
and Design Institute
Member
7. Prof Biswajit Paul, IIT (ISM), Dhanbad Member
8. Sh. Ashok Srinivas, Prayas (Energy Group) Member
9. Ms Apurva Chaturvedi, Sr Clean Energy Specialist,
USAID/India
Member
10.Mr Leon Clarke, Professor, University of Maryland Member
11.Ms Bethany Speer, Group Manager, National
Renewable Energy Laboratory
Member
12. Mr. Nikit Abhyankar, Scientist, Lawrence Berkely
National Laboratory
Member
13.Mr Alex Wood, Director, Department of Energy,
USA
Member
14.Sh. Kamil KPS Bhullar, Research Officer, NITI
Aayog
Member Convenor
COMPOSITION OF THE
COMMITTEE ON JUST
TRANSITION FROM COAL iv
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
Terms of Reference
i. The committee will develop actionable policy brief for India for the coal
sector, which includes design and testing of policy frameworks that would
offer economic opportunities from clean energy value chains to communities
negatively impacted by the declining use of coal.
ii. The committee will carry out a detailed analysis of stranded coal assets and
human-centric approach to energy transition in India including assessment
of current projects in the pipeline, role of coal in deep decarbonization
scenarios, health impacts of coal transitions.
iii. The committee will explore regional collaboration and strategies, including,
sub-national engagements between coal rich US and Indian states can help
in sharing best practices on how the states are dealing with decreasing
dependence on coal.
Composition of the Committee on Just Transition from CoalReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
iv v
Report of the Inter-Ministerial Committee on Low Carbon Technologies formed under the India-US
Sustainable Growth Pillar of the Strategic Clean Energy Partnership
FOREWORD CONTENTS Committee on Just Transition from Coal iii
Foreword v
1. Background 1
2. Introduction 2
3. Key Issues to be Addressed 4
4. Pre-requisites to Enable a Just Transition 6
5. Proposed Action and Implementation Framework 8
5.1. Institutional architecture to enable implementation of
just transition framework 8
5.2. Action and implementation framework 10
6. Conclusions and Next Steps 14
Annexure 16 1. BACKGROUND Report of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
1
In a meeting of Sustainable Growth Pillar held on 12
th
July 2021 under India-US
Strategic Partnership, it was decided to enhance cooperation in the fields of
Energy Data Management, Low Carbon Technologies, Carbon Market & Just
Transition in Coal Sector and form four committees involving Indian and US
counterparts in respective fields.
Accordingly, the committee on Just Transition in Coal Sector involving 18 members
from India and US was constituted with following terms of reference:
i. To develop actionable policy brief for India for the coal sector that
includes design and testing of policy frameworks that would offer
economic opportunities from clean energy value chains to communities
negatively impacted by the declining use of coal.
ii. To carry out detailed analysis of stranded coal assets and human-centric
approach to energy transition in India including assessment of current
projects in the pipeline, role of coal in deep decarbonization scenarios,
health impacts of coal transitions.
iii. To explore regional collaboration and strategies, including, subnational
engagements between coal rich US and Indian states can help in sharing
best practices on how the states are dealing with decreasing dependence
on coal.
Based on the discussions held and inputs received from various committee
members, the present report on Just Transition in Coal Sector has been prepared. 2. INTRODUCTIONReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
2
India is the second largest consumer of coal and coal has hitherto played a
crucial role in India’s energy sector, accounting for 55% of the country’s energy
needs and over 75% of its electricity needs. In addition, coal is also a vital
ingredient and energy source in production of many important material/products
viz. Steel, Cement, Fertilizer, Paper etc. With significant availability of indigenous
coal reserves and its affordability, coal is likely to continue as primary source of
energy for a considerable period of time to meet the developmental needs of
rising economy.
Although in line with NDC goals and commitments made in its Panchamrit
declaration at COP 26, India will push for renewable/non-fossil based energy, but
share of coal in the energy basket is going to remain significant in foreseeable
future. Coal demand is yet to peak. The draft Economic Survey 2021-22 projects
coal demand in the range of 1.3-1.5 billion tonnes by 2030, an increase of
63 per cent from the current demand. As per one of the assessments of NITI
Aayog, although there may be 10 % drop in share of Coal in Primary energy supply
in 2035 (BAU) but quantum of coal demand may rise 1.40 time due to increased
energy demand driven by rising economy. The IEA also estimates that the share of
coal in the overall energy mix steadily declines to 34% in 2040; however, overall
demand for coal still remains stronger to meet the rising energy demand of
rapidly developing economy. So, any coal transition and related activities are not
envisaged both in short and medium term. Rather, new coal mines are going to be
open in future to meet the energy and coal demand, which includes consolidation
in favour of big mines. Also, there would be significant coal demand for projected
adoption of clean coal technologies such as coal gasification, coal liquefaction
etc. Given this, NITI Aayog has set up an expert group to look at coal demand
and guide investments in the coal sector.
In such a situation, coal consumption in the country is likely to peak somewhere
between 2035 and 2040 and may undergo gradual tapering thereafter. This may
result in phase-wise measured closure of mines – starting from low capacity mines
requiring closure on just transition principles. Besides, coal mines will also close 2. IntroductionReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
3
down in the intervening period due to exhaustion of reserves, safety problems,
viability issues etc., requiring proper closure to ensure that there is no loss of
income for people dependent on these mines.
In order to ensure that livelihood of people dependent on coal mines, coal
washeries etc., (collectively referred to as an ‘asset’ or a ‘coal-based asset’
henceforth) and connected community services are sustained post closure, we
need to frame a policy and start capacity building right from now to ensure that
coal assets are closed seamlessly on principles of just transition. This will enable
coal sector developing a comprehensive mine closure framework and robust
capacity for implementing mine closure practices on principles of just transition
in coal sector by the time tapering of coal demand starts in the long run.
The coal sector is deeply interconnected, not only to other sectors, but also to
the local communities. Coal bearing regions have been subsumed into mainly
monoculture societies centred around coal mining and its use. This has led to
heavy economic and social dependence on the coal sector, with it affecting
livelihoods, infrastructure, environmental conditions, state revenues, and quality
of life in these regions. Coal in India occurs in states which are economically
disadvantaged. People derive some sort of earning directly from mining activities
in such areas and indirectly from allied activities.
Thus, the closure of coal-based assets, while an integral part of the transition
in the long run, is going to be disruptive to the sector in general and the local
communities in particular. But it also provides an avenue to address existing
development challenges and provide better opportunities to the concerned
communities. It also provides opportunities for reimagining development in
these regions, focusing not only on addressing the challenges but also meeting
aspirations of the affected communities. Strategising and high-level planning for
such reimagined development should happen in a comprehensive manner, across
interconnected sectors, at the regional/district level. The rollout, however, will
occur at the local/community/asset specific level.
To address these complex and inter sectoral issues, the committee proposes
a multi-level action and implementation framework with an aim to build a
firm base and capacity to enable seamless handling of closure of coal-based
assets happening in long term in a just manner. Toward this end, the suggested
framework aims to address the key challenges brought about by the closure of
coal-based assets, listed in Section 3. The following section, Section 4, outlines
some pre-requisites to enable closure of coal assets on principles of just transition
based on the action and implementation framework, proposed in Section 5.
Section 6 concludes the report with a summary of the proposed action items
and next steps. 3. KEY ISSUES
TO BE ADDRESSEDReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
4
i. Livelihoods: The coal sector provides employment to many people
in coal bearing areas, either directly through mining companies, or
indirectly through contractors used by the mining companies. People
are also employed downstream in the coal value chain, for instance in
coal transport services. In addition, many aspects of the local economy
are directly or indirectly supported by coal. Closure of coal mines would
impact local economies, cause the loss of formal and informal jobs, and
affect small enterprises. Any strategy for promoting just transition must
address this challenge, and include development of alternate options for
employment, such as retraining and reskilling of affected populations,
restoration of traditional livelihoods, and identifying new employment
and entrepreneurship opportunities
1
.
ii. Community health: Communities living in coal regions are provided
facilities of medical care through the hospitals/dispensaries run by coal
companies. The mine closure framework should ensure that such facilities
are continued in some way in post closure period. Also, the entire mining
area should be closed in a manner to ensure that the water and air
regime is free from any harmful contaminant and land area is stabilized
in environmentally sustainable manner.
iii. Physical and social infrastructure: Often, in coal bearing regions, there is
lack of sufficient public infrastructure, and poor access to education and
clean drinking water. Public sector entities (such as Coal India Ltd.) are
known to set up infrastructure in these regions and provide access to
these amenities. For instance, schools, hospitals and roads set up by the
mining company is used by the local community. The community may
also be supplied with water for domestic and irrigation purposes. The
framework/policy need to ensure that such social & physical infrastructure
is sustained post closure.
1 Post closure assets could be redeveloped or used to promote livelihood options that are appropriate
to the region and consistent with the regional development priorities. For example, livelihood options
such as fisheries, tourism enterprises, agro-based or other industries etc. could be developed. 3. Key Issuesto be AddressedReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
5
iv. Repurposing of resources: The coal economy has significant impacts on
natural resources such as land, water, and air. Coal mining, particularly
the nationally predominant open cast mining, changes the land form
by creating large pits and overburden mounds. Loss of forests and
biodiversity is also seen with coal-related projects. Redressal of these
impacts on the local environment is a challenge that must be dealt
with as part of coal mine closure. Additionally, in some cases, it may be
possible to repurpose the natural and physical assets to aid in the area’s
redevelopment. Such options should be explored, while also addressing
issues regarding the ownership of such assets.
v. Public Finance: Coal mining and associated activities contribute
significantly to the state revenue in coal bearing states. This contribution
includes revenue from royalties on mining, District Mineral Fund
contributions, and share of GST. The loss of such revenue could impact
existing state finances and public spending, and worsen regional inequities.
This aspect need to be considered in the policy for just transition.
For effective implementation of a just transition framework, the required
preliminary actions are outlined in Section 4. Supported by these enabling actions,
the action and implementation framework suggested in Section 5 proposes a
comprehensive, consultative, evolving and proactive approach to address the key
issues outlined in this Section. 4. PRE-REQUISITES
TO ENABLE A
JUST TRANSITIONReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
6
i. Coal Transition Policy: Given the complexity and long duration of the
transition, a well-defined policy framework will be required. This will
provide the necessary administrative and legal backing to the proposed
actions. It is recommended that the Centre should develop a coal just
transition policy along the lines suggested in Section 5. This policy should
be finalised after adequate consultations with relevant stakeholders
(in particular, the concerned states) and providing the general public an
opportunity to comment on the policy. The policy should be periodically
(say, every five years) revisited and refined based on gathered experience.
ii. Regional development framework: Coal-bearing states should prepare
a broad framework and plan for a post closure future in these regions,
based on consultations with the local communities. This framework can
guide asset-specific redevelopment plans.
iii. Geospatial survey of coal bearing areas: In order to understand the
extent of assets being dealt with, and the ground reality regarding the
landscape, a detailed geospatial survey of coal bearing regions could be
carried out to prepare a roadmap for coal mine closure.
iv. Financing: The transition is likely to require significant financial resources
(e.g., for ecological restoration in legacy mines, developing new employment
opportunities, industries, reskilling and retraining etc.). Moreover, the
coal mine closures in short and long term is likely to adversely affect
the finances of coal bearing regions that are already typically resource-
starved. Therefore, the Centre should support the just transition process
in coal mines by providing requisite financial assistance beyond the means
of the project proponent and the concerned state government. Towards
this end, a dedicated non-lapsable “Green Energy Transition India Fund”
could be established for the explicit purpose of aiding communities,
regions and states to chart an alternative development path. Resources
for such fund may be raised from various sources such as international 4. Pre-requisites to Enable a Just TransitionReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
7
sources (climate finance), issuance of bonds, special levies or cesses, fines
collected from polluters, existing resources such as DMF, NMET, Clean
Energy Cess and so on. A well-defined mechanism for utilisation of such
funds should also be developed to ensure accountability of funds usage.
The above enabling steps can provide the necessary support to ensure the
effective implementation of the framework proposed in Section 5. 5. PROPOSED ACTION
AND IMPLEMENTATION
FRAMEWORKReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
8
The proposed framework aims to address the key issues identified in Section 3
and enable the closure of coal mines, both in short and long term on just transition
principles.
As seen in Section 3, the challenges associated with the gradual transition
are complex and multi-dimensional. The solutions to effectively address them
are likely to be equally complex and require a lot of analysis, deliberation and
consultation. The efficacy of proposed solutions, however, is dependent on their
implementation.
Towards a just, timely, and accountable transition, the closure of coal-based assets
must be planned and in adherence to stipulated procedures/policy, which requires
a robust institutional architecture. The committee proposes a three-tier Task Force
as the institutional architecture to enable just transition in coal sector happening
in long term, as detailed in sub section 5.1.
5.1. Institutional architecture to enable implementation of just
transition framework
Tier 1Tier 2Tier 3
• Members: Chaired by
MoC, representatives
from relevant Central
ministries, non-govt
experts from relevant
sectors.
• Role: Oversee
Responsible to ensure
just transition. Financial
ascpect of it also.
• Constituted for each
coal bearing state.
• Members: representa-
tives from state govt,
coal companies, and
civil society.
• Role: Develop and
oversee regional
development
framework, align
specific asset closure
to broader regional
policy.
• Constituted by Tier 2 for
each asset being closed.
• Members: representa-
tives from afected local
communities, district
authorities and project
staf.
• Role: Develop and
implement closure plans
with public consultations
and inclusive of
concerns, aspirations of
communities and
monitor implementation.
Just Transition Task Force
Figure 1: Institutional framework to enable a just transition 5. Proposed Action and Implementation FrameworkReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
9
i. Tier 1, instituted at the central level, should be chaired by the Ministry
of Coal (MoC) and consists of representatives from relevant ministries of
the Central government, including ministries related to rural development,
agriculture, human resources development, environment, etc. It should
also include experts from outside the government with experience in
relevant sectors such as coal, human development, and environment.
This tier has the broad role of ensuring just transition in the process of
coal mine closure, and is responsible for setting guidelines and good
practices inthe process. It should ensure convergence and alignment with
existing national policies and programmes, such as MGNREGA, NRHM and
NRLM, with the Just Transition policy of coal sector. Its responsibilities
also include aspects such as tracking upcoming asset closures, tracking
progress of on going asset closures, providing technical and financial
assistance as needed, etc. In order to do so, it can convene meetings
with relevant members of other tiers, and develop a coordinated strategy
for operationalising the suggested framework and to encourage cross-
learning across states and assets. Tier 1 should be constituted soon after
the Just Transition Policy for coal sector is finalised by the Government.
ii. Tier 2, instituted at the state level for each coal bearing state, consists of
representatives from the corresponding state government, representative
from coal companies operating in the State, labour representatives
and transition experts from civil society in relevant areas. This tier is
responsible for ensuring that the state’s concerns (such as employment,
revenue, repurposing of resources, etc.) are addressed. In addition to
overseeing the plans for each asset closure in that state, Tier 2 is also
responsible for developing the regional development framework to
include broader regional actions to enable closure of coal mines with
just transition principles. This includes providing the necessary skill-
development or reskilling, running entrepreneurship programmes, coming
up with appropriate industrial policies etc. Tracking and addressing the
loss of state revenue from such asset closures also falls under the purview
of this tier. Tier 2 is also responsible for aligning existing state policies
(related to employment, entrepreneurship, resource repurposing, etc.) and
asset-specific closure plans with the regional development framework.
Tier 2 should be constituted soon after the Just Transition Policy for coal
sector is finalised by the Government.
Tier 3 will be constituted by Tier 2 for each asset being closed. They
should be constituted at least 4 years before the asset is closed, so
that a consultative asset-specific redevelopment and repurposing plan
as detailed in Section 5.2 can be completed before the asset closure. 5. Proposed Action and Implementation FrameworkReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
10
iii. Tier 3 consists of representatives from the affected local communities,
representatives from the project staff and corresponding district
administration and agencies. This tier is mandated to develop and
implement the redevelopment and repurposing plan (as suggested
in Section 5.2) for each asset that is being closed, based on public
consultations. This tier is responsible for ensuring that the concerns
and aspirations of the community are captured in the framework
for the specific asset closure, and its implementation. If local district
administrations do not have the requisite capacity for this, they should
be strengthened accordingly. Tier 3 may also hire external consultants
to assist them with their tasks but the responsibility remains with them.
The lifetime of Tier 3 is based on the particular asset’s closure plan.
The proposed Task Force should be constituted with sufficient expertise and
capacity to fulfil its mandate. Moreover, it should have a dedicated, functional,
publicly accessible website, where details of all the Task Force members are kept
up to date. This website should also become the repository for all the reports
and plans related to coal asset closure, and should be kept regularly updated.
Towards ensuring accountability and accessibility, the reports uploaded on the
website should also be available in local languages.
The tiers of this Task Force, individually and jointly, are responsible for the effective
implementation of the framework suggested in sub section 5.2.
5.2. Action and implementation framework
i. Prepare and publish an annual report on planned coal-based asset
closures: While some details regarding mine closures are currently
reported in various sources, we recommend that such reporting is
mandated and streamlined. A detailed list of coal mines, washeries, and
other assets that are due to be decommissioned should be prepared and
made available on an annual basis. This report should be published by a
pre-determined date every year (for example, Dec 31st) and should list
coal-based assets up for decommissioning/retirement/closure over the
next five year period. (For instance, if the first such report is published
in Dec 2022, it should contain information of closures in FY 2023-24,
FY 2024-25, FY 2025-26, FY 2026-27, and FY2027-28). This should
provide sufficient advance notice and give a window to undertake the
steps required to take up the closure on principles of just transition.
For coal mines and washeries, in addition to project information (name,
location, peak rated capacity etc.), the report should carry details
regarding the proposed date of closure, amount deposited in escrow
account for closure, and a link to the progressive and final mine closure 5. Proposed Action and Implementation FrameworkReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
11
plan (and any monitoring reports of the same). Some of this information
may be available in the mine closure plan, and can be reused from there.
The Coal Controller’s Organisation (CCO) should compile this report on
an annual basis and make the same available to the public on their
website and share it with the Task Force for publication on its website
before the pre-determined date.
Tier 1 of the proposed Task Force should ensure that these reports get
published annually, and CCO are held accountable for it.
ii. Prepare an asset-specific redevelopment and repurposing plan based
on wide-spread consultations: As established in earlier sections, coal-
based assets are deeply interlinked with local communities. Given that the
closure of these projects is going to particularly impact them, strategies
for project closure, and the way forward, must include perspectives from
community stakeholders. Toward this end, for each coal-based asset that
is to be closed, a redevelopment and repurposing plan must be prepared
and got approved from Tier 2 level Task Force at least 3 years prior
to the expected date of closure. The plan must include strategies to
address the impact the coal sector has had on the livelihoods, community
health, infrastructure, natural resources, and public finance (elaborated
in Section 3) in that region. The redevelopment and repurposing plan
should:
a. be developed based on public consultations with all affected parties
and communities
b. be broadly consistent with any regional or district level development
plans
c. include year-wise strategy (From 3 years before closure of asset till
the year of hand over of the site after closure of site in all respects)
and action plan to address the challenges of livelihood loss, impact
on community health, physical and social infrastructure, repurposing
of resources, and impact on public finances (key issues listed in
Section 3)
d. include details on operationalising and financing of the plans each
year
e. include the provisions made in the existing mine closure plan of
coal asset
At present, mine closure for all the projects, including provisions for
an escrow fund, has been planned and mine closure plan (MCP) for
every project has been approved. This has been done as per Mine
Closure Guidelines, 2013. The MCP is now merged with the mine plan 5. Proposed Action and Implementation FrameworkReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
12
and guidelines to this effect has been issued vide OM dated 29
th
May,
2020 from MoC. A mine closure status report has also been prepared
for mines that were closed prior to issuance of MCP Guidelines, 2009.
The mine closure plan and guidelines issued by MoC vide OM dated
29th May 2020 (and its earlier variants) include some technical, financial,
social and environmental aspects of asset closure. The redevelopment
and repurposing plan may borrow from the mine closure plan for all
overlapping issues in consonance with the views of the local communities.
The Ministry may also consider revising the mine closure guidelines to
include some of these aspects.
The responsibility for preparing such a plan is with Tier 3, based on
guidance from Tiers 1 and 2. The funding for developing such a plan must
come from the project proponent (whose asset is being closed) and the
State and Central government. Creation of a special fund at Centre has
already been proposed earlier. Part of DMF fund may also be allocated
for the purpose.
For each asset closure, Tier 2 of the Task Force must constitute and
oversee Tier 3, which should prepare the redevelopment and repurposing
plan for the asset and should ensure that the plan is made after following
due consultative process and is published on the Task Force website
before the closure of the asset. They can seek assistance from Tier 1
and Tier 2 in this regard. Tier 1 and Tier 2 may get a standard template
developed for preparation of redevelopment and repurposing plan.
After closure of the asset, Tier 3 or an agency appointed by Tier 3 should
ensure that the asset closure activities are undertaken in accordance
with the detailed phase-wise plans and timelines chalked out in the
redevelopment and repurposing plan.
iii. Prepare an annual monitoring and oversight report after closure:
In order to ensure that the closure is progressing as stipulated in the
redevelopment and repurposing plan, Tier 3 or the agency appointed
by Tier 3 for implementing the redevelopment and repurposing plan
should produce an annual report. This report should track the progress
of closure implementation in accordance with the redevelopment and
repurposing plan, regarding all the key issues listed in Section 3. It
shouldbe vetted and approved by Tier 2 of the Task Force. This annual
progress report should be made available publicly on the website of the
Task Force. These measures will ensure public accountability for timely
and proper implementation of the redevelopment and repurposing plan.
Tier 3 should remain active and in-force until the entire redevelopment
and repurposing plan is implemented and the various tiers of the task-
force have signed off on its successful implementation. 5. Proposed Action and Implementation FrameworkReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
13
A schematic diagram of the action and implementation framework is illustrated
in figure 4.
Scope: National
Implemented by: CEA (TPP),
CCO (coal mines)
Overseen by: Tier 1
Scope: Asset-specific
Implemented by: Tier 3
Overseen by: Tier 1, 2 and 3
Scope: Asset-specific
Implemented by: Tier 3
Overseen by: Tier 2 and 3
Scope: Asset-specific
Implemented by: Tier 3
Overseen by: Task Force
Declared
retirement is
captured in
Annual closure
report
Redevelopment &
repurposing plan
is prepared with
year-on-year plans
post closure
Project closure
is carried out as per
redevelopment
& repurposing
plan
Monitoring
report is
prepared for
each year after
the closure to
track progress
Figure 2: Action and implementation framework 6. CONCLUSIONS
AND NEXT STEPS
Report of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
14
While the transition away from coal is going to be set over a multi-decadal time
frame, some coal mines may close down due to exhaustion of reserves, safety
reasons and viability issues. As discussed earlier, such mine closures happening in
short term and closures happening in long term due to tapering of coal demand
will have impact on the livelihood of local community and also on the economy
of coal regions and will present social disruptions, challenges, and opportunities.
In order to handle the mine closures happening in long term and also ensure
that the long term transition does not take place in an ad hoc fashion, and the
affected communities concerns and aspirations are addressed, it is crucial to
have a comprehensive mine closure framework, a robust plan and policy in place.
Toward this end, the Committee recommends the adoption of the framework
suggested in this document. Broadly, this consists of the following steps:
i. Developing a just transition policy for handling closure of coal mines
based on the suggested action and implementation framework and
undertaking the associated enabling actions
ii. Identifying sources of funds to support the said just transition, and
developing guidelines for utilisation of such funds to enable the envisaged
just transition along the lines proposed
iii. Setting up a three-tiered Task Force that will be responsible for the
operationalisation of the proposed just transition policy
iv. Ensuring closure related activities are carried out in accordance with the
stipulated policy
v. Developing redevelopment and repurposing plans for each coal asset
closure with extensive involvement and consultation with local communities
vi. Making all information (reports, data etc.) publicly available to enhance
accountability, and transparency 6. Conclusions and Next Steps
Report of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
15
An institutional and operational architecture as recommended would help India
navigate the challenge of coal mine closures that may happen in short and long
term, as deliberated earlier, in a just manner that utilises it as an opportunity to
enhance the lives of communities currently dependent on and affected by coal
directly or indirectly. ANNEXURE
Report of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
16
307742/2021/ENERGY
1 AnnexureReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
17
307742/2021/ENERGY
2 AnnexureReport of the Inter-Ministerial Committee on Just Transition from Coal under the
Sustainable Growth Pillar of the India-US Strategic Clean Energy Partnership
18
307742/2021/ENERGY
3 NOTES
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........................................................................................................................................................................................................................ www.niti.gov.in
REPORT OF THE INTER-MINISTERIAL COMMITTEE ON
JUST TRANSITION FROM COAL
Under Sustainable Growth Pillar
of India-US Strategic Clean Energy Partnership