New Delhi: South Eastern Coalfields Limited (SECL) has signed an escrow agreement for 72 of its mines as part of its efforts to strengthen mine closure and rehabilitation activities. The agreement was signed on September 28, 2026, at the Coal Controller’s Office in New Delhi.
SECL said the agreement is an important step towards responsible mining, effective mine closure and sustainable development in mining-affected areas.
SECL Signs Escrow Agreement for 72 Mines
The escrow agreements were signed for 72 SECL mines by the company’s Mine Closure and Rehabilitation (MCR) department.
The escrow arrangement is intended to help ensure systematic management of the financial provisions and activities related to mine closure.
Key Details of the Agreement
- Company: South Eastern Coalfields Limited (SECL)
- Mines Covered: 72
- Agreement: Escrow Agreement
- Date: September 28, 2026
- Venue: Coal Controller’s Office, New Delhi
- Department: Mine Closure and Rehabilitation (MCR)
- Community Development Provision: 25% of the mine closure fund
Read also: SECL IPO: Coal India Subsidiary Eyes $800 Million Share Sale, Targets December 2026 DRHP Filing
25% of Mine Closure Fund for Community Development
Under the escrow arrangement, 25% of the mine closure fund will be used for community development and livelihood-related activities.
The provision is aimed at supporting communities in areas affected by mining. It will also help facilitate development, rehabilitation and livelihood activities in mined-out areas.
The initiative is expected to provide a structured mechanism for directing a portion of the mine closure funds towards community-focused activities.
Focus on Mine Closure and Rehabilitation
SECL said the escrow arrangement will help streamline the implementation of activities associated with mine closure and rehabilitation.
The mechanism will support the systematic execution of financial provisions related to mine closure, while also creating scope for development and livelihood initiatives in mining-affected areas.
Step Towards Compliance with Mine Closure Guidelines
The signing of escrow agreements for 72 mines marks an important step for SECL towards compliance with the Ministry of Coal’s mine closure-related guidelines.
The company said the initiative reinforces its focus on:
- Sustainable development
- Community welfare
- Environmental responsibility
- Mine closure and rehabilitation
- Responsible mining practices
- Livelihood development in mining-affected areas
Escrow Arrangement to Support Mined-Out Areas
The escrow mechanism is expected to facilitate the planned use of mine closure funds after mining activities are completed.
With 25% of the fund earmarked for community development and livelihood activities, the initiative can support projects aimed at improving local development and livelihood opportunities in affected areas.
SECL said the initiative strengthens its approach towards responsible mining and long-term rehabilitation of mining regions.
About South Eastern Coalfields Limited (SECL)
South Eastern Coalfields Limited (SECL) is a subsidiary of Coal India Limited and is engaged in coal mining operations. The company operates mines primarily in Chhattisgarh and Madhya Pradesh and contributes to India’s coal production and energy supply. SECL also undertakes initiatives related to mine closure, rehabilitation, environmental management and community development.
Read also: SECL Holds Two-Day Capacity Building Programme on Public Procurement at Bilaspur
