Coal Extraction Halted at Kalakote Mines as Losses Deepen; Rs 71.34 Cr PF Due | Kashmir Life

SRINAGAR: Coal extraction at Jammu and Kashmir’s Kalakote coalfields has been halted at the Mehataka mine after the Director General of Mines Safety (DGMS) imposed prohibitory orders, even as official data shows the mines have slipped into persistent losses, mounting liabilities and shrinking production over the past decade.

The DGMS, Srinagar, invoked Section 22(3) of the Coal Mines Regulations, 2017, through an order dated June 19, 2025, stopping operations at the Mehataka coal mine due to the shortage of mandatory statutory staff, including qualified mine managers, surveyors and mining sardars. The stoppage has effectively curtailed extraction at one of the key pits in the Kalakote belt of Rajouri district.

The corporation operating the mines has initiated recruitment of the required technical personnel through the GeM portal and has requested the regulator to lift the prohibition once compliance is achieved. Until then, production remains suspended.

The halt comes at a time when the Kalakote coal mines — comprising Kalakote, Moghla, Metka and Bergoa — are already under financial strain. Official figures show falling output, declining revenues and steadily rising expenditure over the years, pushing the operations into recurring losses.

Data on sales and earnings indicate that coal dispatch has contracted significantly. Sales stood at 12,709.40 metric tonnes in 2013–14, rising to 13,796 MT in 2014–15 and fluctuating around 12,000–15,000 MT in the following years. The highest recorded dispatch was 14,995.10 MT in 2017–18. However, volumes later declined to 8,325.22 MT in 2020–21 and 10,842.80 MT in 2022–23, before dropping sharply to just 3,516 MT in 2023–24.

Revenue trends mirror the fall. Income was Rs 791 lakh in 2013–14 and Rs 888 lakh in 2014–15, touching Rs 1,201.79 lakh in 2017–18. After fluctuating for several years, revenue rose to Rs 1,477.21 lakh in 2021–22 but again fell to Rs 1,052.73 lakh in 2022–23 and plunged to Rs 341.18 lakh in 2023–24.

Meanwhile, expenditure has remained high. Revenue expenditure increased steadily from Rs 763.07 lakh in 2013–14 to Rs 1,212.78 lakh in 2018–19 and Rs 1,495.20 lakh in 2020–21. It peaked at Rs 2,618.72 lakh in 2021–22 and Rs 2,389.80 lakh in 2022–23, before standing at Rs 1,410.48 lakh in 2023–24. Capital expenditure during this period was minimal, with only intermittent allocations such as Rs 80 lakh in 2018–19, Rs 25 lakh in 2019–20, Rs 24.30 lakh in 2020–21, Rs 43 lakh in 2021–22, Rs 10 lakh in 2022–23 and Rs 21 lakh in 2023–24.

The mismatch between earnings and spending has translated into losses in most years. While small profits were recorded in 2013–14, 2014–15 and 2015–16, losses began appearing from 2016–17 and widened thereafter. Deficits reached Rs 508.56 lakh in 2019–20, Rs 837.53 lakh in 2020–21, Rs 1,141.51 lakh in 2021–22, Rs 1,337.07 lakh in 2022–23 and Rs 1,069.30 lakh in 2023–24. For 2024–25, revenue of Rs 216.27 lakh against expenditure of Rs 1,500 lakh resulted in a further loss of Rs 1,283.73 lakh.

Apart from operational losses, the corporation is also grappling with worker welfare liabilities. Coal Mines Provident Fund (CMPF) dues have accumulated to Rs 71.34 crore up to October 2025. The management said pension and gratuity payments are being cleared in phases and current contributions are being deposited regularly.

At the older Moghla mine, developed over five decades, production has reduced and safety challenges persist. Officials said proper maintenance and operational measures are being undertaken, and additional safety equipment is being provided to workers. Plans are also in place to open a new mine at Moughola to augment output and stabilise operations.

Despite limited budgetary support, the corporation said it continues to meet day-to-day operational expenses and salary payments. However, liquidation of past liabilities depends largely on the realisation of Rs 179.04 crore outstanding from the transfer of the Thermal Power Station, Kalakote, to the Power Development Department. In the alternative, a one-time financial package from the government has been suggested.

The issue of regularisation of coal mine workers remains pending due to the weak financial position. The Board has directed strict cost control, reduction of operational losses and implementation of decisions taken jointly between management, board members and workers’ representatives.

With extraction halted at Mehataka, ageing infrastructure at Moghla, mounting provident fund dues and a prolonged run of losses, the future of the Kalakote coal mines now hinges on regulatory clearance, financial restructuring and revival measures aimed at restoring viability to the region’s only operating coalfields.