Just Transition: Need for Green Transition in the Coal Mining Districts of India

By Dr. Sudipa Majumdar, Director and Dr. Navpreet Saini, Senior Research Analyst, IRADe

Mining in India has always been a double-edged sword for the economy, on the one hand, it provides employment and basic livelihoods to the people of the states and on the other affects the health conditions of those living and working near mining areas, as they are directly susceptible to injury and disease. India is the second largest coal producer (10.35 per cent of the world’s coal production). More than 15 million people in the coal mining districts derive earnings from coal or indirectly from allied activities. Nearly, 70 per cent of coal workers belong to tribal communities and work as daily wage earners. They are informal contractual laborers who are engaged in the coal mines as washers, gatherers, pickers, manual transporters, sellers, loaders, levelers and casual workers.

The four states—Chhattisgarh, Madhya Pradesh, Jharkhand, and Odisha—are at the forefront of India’s coal mining sector. Chhattisgarh has rich coal deposits, particularly in the Korba region, accounting for 18.3 per cent of the total coal production of India. Madhya Pradesh, known for its diverse mineral wealth, has 4.5 billion tonnes of coal reserves. Jharkhand, rich in iron ore, coal, and uranium, contributes about 25 per cent of India’s total mineral wealth, with the Jharia coalfield being one of the oldest and largest in the country. Odisha holds 24 per cent of the country’s coal reserves and the state’s oldest coal mines are located in Talcher and Ib valley producing more than 20 per cent of the total coal in India. These four states are integral to India’s mineral production, driving the country’s industrial growth. Table 1 indicates that the coal mining States account for 70 per cent of the coal production in India but, at the same time, their per capita GDP is far lower than the all-India level, with an overwhelming majority of the population living in rural areas.

Table 1: Coal States of India

Coal States (Units) Rural population (Million %)

Per capita GDP (Rs)

Coal production (Million tonnes)

Chhattisgarh 19.6 (76.8%) 133,898 184.89
Madhya Pradesh 52.6 (72.4%) 140,583 146.03
Jharkhand 9.77 (75.9%) 100,288 156.48
Odisha 38.4 (83.3%) 150,676 218.98
All India 909.1 (68.8%) 169,496 1010.89

Source: Statista.com

People living near coal mines depend entirely on mining work for their livelihoods, directly or indirectly. The majority belong to the low-income informal economy that lacks any form of labor protection or social safety. Significant portions of their incomes are spent on medical expenses, particularly for people living closer to the mines since severe pollution, including poor air and water quality, gives rise to chronic respiratory diseases, skin disorders, and waterborne illnesses. The people also face health risks due to direct exposure to harmful substances such as coal dust, silica, chemicals, and welding fumes, which lead to serious conditions like pulmonary diseases, asthma, and lung cancer. Displacement caused by mining further strains healthcare access in rural areas with under-resourced infrastructure, exacerbating socio-economic inequalities. Water discharged from coal mines, contaminated with heavy metals, oils, and other pollutants, further degrades the health of local communities, making it difficult for them to improve their living conditions or access quality care. According to a survey by the National Foundation of India, 65 per cent of participants interviewed reported issues such as chronic bronchitis, asthma, and skin ailments such as eczema, dermatitis, and fungal infections. The mining workers were found to spend Rs 300-1,000 monthly on medical bills.

Despite the critical health challenges in the mining zones, particularly for women and children. The mine workers are deprived of a quality healthcare system. The number of primary health centers (PHCs) and community health centers (CHCs), in the rural areas, is inadequate. The health status figures (Table 2) show a high infant mortality rate (IMR for deaths of children under one year of age per 1,000 live births) and a high rural death rate in the coal mining States that exceed the national average levels. The table also highlights the inadequacy of healthcare infrastructure and manpower in rural facilities. For example, there are only 773 PHCs and 166 CHCs to cater to the 19.6 million rural population of Chhattisgarh with a huge shortfall of medical officers in these healthcare centres. 

 

Table 2: Health status and infrastructure in the coal states of India

Coal States Rural health status Rural health infrastructure Doctors in rural Areas
Rural IMR Rural Death Rate PHC CHC at PHCs at CHCs
Chhattisgarh 40 8.4 773 166 585 6
Madhya Pradesh 47 6.8 1,440 332 1,404 7
Jharkhand 26 5.5 308 188 285 94
Odisha 37 7.5 1,277 330 916 33
All India 31 6.4 25,354 5,491 32,901 17,240

Source: Ministry of Health and Family Welfare, 2022-23

Coal mining districts in India have remained “aspirational” displaying low levels of socio-economic and human development indicators due to poor social infrastructure. The inadequacy of the medical infrastructure in the rural areas of the mining districts becomes more stark when we look into the micro-level data. For example, there are only 773 PHCs and 166 CHCs to cater to 19.6 million rural population of Chhattisgarh with a huge shortfall of qualified doctors in these healthcare centres. The scenario becomes more stark when we look into the micro-level for the coal mining districts within these States. Angul is the largest coal mining district in India with more than 1 million people living in rural areas and depending solely on coal mining for their livelihoods. Table 3 shows that the rural population of Angul has access to only 31 functional PHCs and 9 functional CHCs for all their medical needs. 

Table 3: Health status and infrastructure in the coal districts of India

States Coal mining districts Rural population Functional rural PHCs Functional rural CHCs
Odisha Jharsuguda 348,340 16 5
Sundargarh 1,355,340 59 18
Angul 1,067,275 31 9
Jharkhand Dhanbad 1,124,093 26 8
Bokaro 1,078,686 26 8
Deogarh 1,233,712 5 7
Hazaribagh 1,459,188 13 9
Godda 1,249,132 13 8
Giridih 2,237,450 15 12
Ramgarh 530,488 5 5
Pakur 832,910 8 6
Daltonganj 1,713,866 22 8
Chhattisgarh Korba 760,350 36 6
Raigarh 1,247,682 43 8
Surguja 1,834,913 25 6
Koriya 453,618 13 2
Madhya Pradesh Sidhi 1,033,912 31 6
Shahdol 846,463 32 8
Umariya 534,214 15 5
Betul 1,266,211 39 10
Chhindwara 1,585,739 68 8
Narsinghpur 888,314 23 6
Singrauli 951,487 22 7

Source: Health Dynamics of India (Infrastructure and Human Resources), 2022-23.

The consequence of the degrading environment leading to critical health conditions, along with inadequate health infrastructure have resulted in abysmal quality of life in the coal mining zones in India. Table 4 shows the low quality of life in terms of their access to safe clean drinking water and sanitation (WS), environmental quality (EQ), and air quality index (AQI). Sidhi (in Madhya Pradesh) had the lowest access to safe clean drinking water and sanitation. Every coal mining district, except Narsingpur in Madhya Pradesh, had a WS index that was lower than the national average. The EQ of Dhanbad was the lowest while the AQI of Angul was the worst. AQI was particularly low in the coal districts of Chhattisgarh and Madhya Pradesh. The low living conditions have been exacerbated by the low access to basic medical care (BMC) where every coal mining district had a BMC index that was lower than the national average with Pakur and Godda (Jharkhand) having the lowest score. The overall effect was the multidimensional poverty index (MPI) showing the most pathetic socio-economic conditions of the people of Surguja in Chhattisgarh and Pakur in Jharkhand. 

Table 4 – Index of Wellbeing, Poverty, and Air Quality in Coal Mining Districts

States Coal Mining Districts WS EQ AQI BMC MPI
2022 2022 2024 2022 2021
Odisha Jharsuguda 53.14 43.42 120 44.87 0.028
Sundargarh 49.23 56.04 113 33.52 0.062
Angul 45.26 58.93 171 37.03 0.061
Jharkhand Dhanbad 45.83 38.92 130 35.46 0.074
Bokaro 42.10 50.73 134 33.08 0.067
Deogarh 53.06 60.79 120 37.38 0.070
Hazaribagh 30.04 62.68 136 35.37 0.110
Godda 37.79 59.30 129 25.22 0.168
Giridih 36.24 53.78 132 33.27 0.133
Ramgarh 42.09 48.19 135 33.28 0.077
Pakur 24.84 53.60 125 19.06 0.244
Daltonganj 36.75 58.11 118 25.95 0.144
Chhattisgarh Korba 37.55 59.36 103 35.02 0.077
Raigarh 55.53 48.74 116 35.09 0.080
Surguja 56.33 63.33 97 40.36 0.307
Korea 44.12 64.68 107 40.29 0.085
Madhya Pradesh Sidhi 24.42 68.35 91 33.10 0.145
Shahdol 34.72 65.86 89 32.55 0.099
Umariya 33.58 71.60 96 30.66 0.098
Betul 46.01 60.38 92 41.43 0.093
Chhindwara 55.37 51.71 99 45.83 0.060
Narsinghpur 74.65 51.18 72 41.68 0.063
Singrauli 27.70 63.17 92 35.82 0.144
National average 61.45 56.08 128 49.2 0.069

Note – BMC: Access to basic medical care; WS: Access to safe drinking water and sanitation; EQ: Environmental quality; AQI: Air quality index; MPI: Multidimensional Poverty Index; Figures in red indicate – below the national average

Source: Authors’ Compilation

As India moves towards its Net Zero emissions target by 2070, the shift from fossil fuels, particularly coal, to greener energy sources, like solar, hydro, and wind, would present both opportunities and challenges. 

Switching to renewables would automatically lower carbon emissions, aligning coal-rich states with India’s Nationally Determined Contributions (NDCs) under the Paris Agreement. Green energy transition would also help to mitigate climate vulnerabilities such as heatwaves, droughts, and floods, bringing about significant improvements in the standards of living. Lowering coal production will lead to significant environmental benefits, such as improved air and water quality, reduced health risks from pollution, and cleaner energy. Therefore, improved air quality with green surroundings would reduce healthcare expenses. Abandoned coal mines can also be repurposed for renewable energy alternatives, following the successful implementation in Germany, United Kingdom, China etc. 

Renewable energy projects would attract investments in solar, wind, and hydropower that are expected to create significant employment opportunities. Renewable systems like microgrids and decentralised solar power will enhance energy security in remote areas along with modern technologies like rooftop solar and off-grid wind power systems to provide reliable electricity and reduce energy poverty. Therefore, by embracing renewable energy and sustainable practices, coal mining states can unlock new avenues of growth, create jobs, diversify income sources, improve public health, and reduce climate vulnerabilities, leading to economic, social, and environmental benefits. 

However, achieving this transition requires comprehensive planning and coordinated efforts. A successful transition for the coal mine workers would depend crucially on their ability to transform their livelihoods from their dependence on coal to greener job options. The majority of coal miners are unskilled and often illiterate, having relied entirely on coal mining for their livelihoods. A job displacement for these casual workers requires correct strategies and support to encourage them to adopt new-age work ethics. Upskilling for jobs in renewable energy requires hands-on training through dedicated programs, providing financial incentives, and ensuring community participation. 

Immediate steps are also needed to improve basic infrastructure in the coal mining regions, where communities lack access to basic facilities like sanitation and healthcare. While the largest producer of coal in India, Coal India Limited, has been providing free medical services to their workers and families through company hospitals and dispensaries, these benefits are limited and do not extend to informal miners or their dependents. As a result, nearly 70 per cent of the miners who work on daily contracts do not receive any benefits. A transition of the informal workforce into a formal employment net would itself lead to a complete transformation of the labour force participation in India, bringing them into the social safety nets and healthcare benefits. According to ILO guidelines, providing social security such as unemployment benefits and healthcare insurance, will be crucial to ensure that workers are not left behind during this transition. State governments must, therefore, prioritise healthcare and social welfare for all mining workers, ensuring that they have access to essential services and upgrading themselves to a dignified standard of living.

With the right strategies and support from the central and local governments, coal mining states can emerge as leaders in the global shift towards a greener future.  To make this green transition truly “just”, India must balance environmental goals with comprehensive support for the coal mining workforce, creating safer jobs, attracting investments and enhancing welfare services while reducing environmental degradation. The benefits of this transition would, then, extend beyond short-term economic gains, fostering sustainable development and energy security for future generations.