Quantifying environmental and economic benefits of reclamation at opencast coal mines in Telangana India

Abstract Open-cast coal mining poses substantial environmental risks such as soil erosion, air and water pollution, and habitat degradation, necessitating targeted reclamation to restore ecosystem functions. This study quantifies the environmental benefits and associated economic savings of post-mining reclamation across six Singareni Collieries Company Ltd (SCCL) opencast mines in Telangana Gautam Khani (GKH OC), Koyagudem-II (KOC-II), Jawahar Khani-5 (JK-5 OC), Kakatiya Khani-II (KTK OC-II), Dorli-I, and Dorli-II spanning production capacities of ~0.70–2.50 MTPA. The assessment integrates Half-Yearly Monitoring Reports and satellite-derived indices (Normalized Difference Vegetation Index, Land Surface Temperature, and Aerosol Optical Depth) to capture post-reclamation trends. Economic valuation employed value-transfer and market-pricing approaches to monetize changes in air quality, water quality, noise levels, vegetation recovery (carbon sequestration), and particulate-related impacts (PM 2.5 ). These integrated environmental indicators and economic estimates were then evaluated at the individual mine level to assess site-wise variation and overall reclamation performance. Results indicate marked site-specific heterogeneity. Substantial vegetation recovery (NDVI-linked gains) was observed at GKH (266.13 ha), KTK (210.87 ha), and JK-5 (84.06 ha), translating into the highest annual benefits at GKH (~₹253 Lakhs), followed by KTK (~₹132 Lakhs) and JK-5 (~₹77 Lakhs). While the aggregate of positive site benefits is ~₹462 Lakhs, the net total across all six mines is ~₹132 Lakhs, reflecting offsetting negative valuations at KOC-II and the Dorli sites, primarily attributable to persistent surface-water quality constraints. Overall, reclamation improved vegetation cover, localized air quality, and noise attenuation at several sites, but hydrological deficits constrained net gains. The findings underscore the need for site-specific, water-centric reclamation strategies integrated with sustained revegetation and institutionalized monitoring to secure durable net ecosystem benefits and guide funding prioritization.