COAL has long been one of the largest sources of modern energy, powering industries, transportation, and most importantly, electricity generation. India, being one of the largest producers and consumers of coal, relies heavily on this fossil fuel to sustain its energy demands. Within India, Jharkhand holds a crucial position as one of the largest coal-producing states. With its vast reserves and mining infrastructure, Jharkhand plays a central role in meeting the country’s coal needs. The production and royalty collected by coal mining is the following over the years:

Table: Y-O-Y Coal Production and Royalty collected by Jharkhand

(Sources: www.ceicdata.com & MoC, GoI)

However, the relationship between Jharkhand and coal is not merely economic – it is deeply interwoven with the state’s social, political, and environmental fabric. The expansion of mining activities has led to displacement, environmental degradation, and socio-economic struggles for local communities.

Now, with increasing global and national efforts to transition away from coal, Jharkhand faces another challenge: how to ensure a ‘Just Transition’ – a shift towards cleaner energy without worsening the socio-economic conditions of coal-dependent communities.

Jharkhand’s coal industry is dominated by public sector undertakings (PSUs) such as Coal India Limited (CIL) and its subsidiaries, including Eastern Coalfields Limited (ECL), Central Coalfields Limited (CCL) and Bharat Coking Coal Limited (BCCL). Alongside these PSUs, several private players, both big and small, have emerged due to the push of commercial coal mining by the central government, contractualisation and privatiSation of coal mining workers and outsourcing of operational mining activities in the form of Mine Development cum Operator (MDO) model.

Mining projects in Jharkhand operate on both forest land and private ‘raiyat’ (tenant) land. Over the years, the state has witnessed large-scale land clearances for mining purposes. A significant shift occurred post-2014, with an accelerated push for coal block auctions and private-sector involvement.

The 2019-2024 period saw 2,658 hectares of forest land allocated for mining, bypassing local gram sabhas. This has disproportionately affected adivasis (indigenous people) and rural communities, whose land rights have been systematically overlooked.

Coal mining has historically been a site of intense labour struggles, particularly in the face of privatisation, disinvestment, and the increasing role of Mine Developer cum Operators (MDOs). The involvement of private outsourcing companies in coal mining, such as Monte Carlo Ltd. in Rajmahal (ECL) and EMIL (Birla group) in Hura C Mine, has led to the de-regularisation of jobs.

Workers in these mines often face contractual or fixed-term employment instead of permanent jobs, making them vulnerable to exploitation. The lack of job security, low wages, and poor working conditions have led to protests and interventions by trade unions such as CITU (Centre of Indian Trade Unions), demanding better working conditions and rights for coal workers.

Most mining companies prefer open-cast mining due to its cost-effectiveness and higher production rates. However, open-cast mining has severe consequences:

●     Mass displacement: Thousands of families are forced to leave their ancestral lands with little or no compensation.

●     Deforestation and loss of biodiversity: Large tracts of forest land are cleared, endangering flora and fauna.

●     Severe environmental pollution: Dust and particulate matter from open-cast mining contribute to respiratory illnesses among local communities.

Additionally, the dumping yards and old mining sites left behind by coal extraction projects often lack proper rehabilitation plans. In many areas, companies transport coal using large dump trucks, leading to poor conditions of roads in the area, increased road accidents, and unchecked pollution. For instance, coal is being transported to Pakur and Dumka railway sidings from nearby mines, causing air pollution along transport routes.

One of the unintended consequences of displacement and unemployment due to mining has been the rise of an informal coal economy. Families displaced by mines, who have received neither compensation nor jobs, often resort to picking coal from abandoned mines and dumping sites. They transport it on bicycles or motorcycles to urban centers, where it is sold in black markets.

While this illegal coal trade helps some families survive, it is also fraught with dangers. Mine collapses in the illegal mining areas are frequent which often leads to tragic deaths, but instead of acknowledging these as workplace accidents, authorities label the victims as ‘thieves’, rather than acknowledging the structural problems forcing them into this hazardous work. There have been multiple instances where CITU and CPI(M) have intervened to demand recognition and compensation for the families of victims. The government has in general been apathetic to these demands.

Jharkhand’s coal economy is affected by a complexity that has become overt due to excessive outsourcing and hence forced displacement. On the one hand, local landowners fight for their right to compensation and rehabilitation, while on the other hand, coal workers – many of whom are migrant labourers – struggle for job security and fair wages. This pushes local people into resisting mining activities of not just the private companies but also the PSUs.

Examples of this contradiction can be seen in Lohandia (Rajmahal ECL Project, Godda district), where hundreds of people were displaced without compensation or jobs. The CPI(M) team visiting the site found that the ECL management, with police support, was bulldozing the houses of landowners while expanding mining operations.

The land question is particularly sensitive in Santhal Pargana, where laws such as the Santal Pargana Tenancy Act, meant to protect tribal land, are being violated by private coal companies. Many local politicians remain silent on these violations, implicitly supporting private companies in their land acquisitions.

The privatisation of coal mining has intensified displacement, labour exploitation, and environmental destruction in Jharkhand. The lack of proper compensation, job opportunities, and rehabilitation for displaced communities has resulted in protests and struggles by affected people. Moving forward, several key issues need urgent attention:

●     Strict enforcement of compensation and rehabilitation laws for displaced families.

●     Regularisation of contract workers to ensure job security and fair wages.

●     Stronger environmental regulations and proper rehabilitation of mining sites to reduce pollution and displacement.

●     Preventing illegal coal mining deaths by providing alternative livelihoods to displaced workers.

●     Strict action against corrupt local brokers who facilitate illegal land grabs for private companies.

Without addressing these issues, Jharkhand’s coal economy will continue to be a site of deepening inequality and exploitation. While coal remains essential for India’s energy security, it is critical to ensure that those who bear the brunt of its extraction – workers, tribals, and local communities – are not left to suffer in silence.