Economy & BudgetImportant2025-06-25

Revised Jharia Master Plan Approved

In News

What Happened

On June 25, 2025, the Cabinet Committee on Economic Affairs approved the Revised Jharia Master Plan with a financial outlay of Rs 5,940.47 crore. The scheme targets century-old underground coal mine fires, land subsidence, and the resettlement of vulnerable families in Jharkhand's Jharia Coalfield.

Why It Matters

Jharia is one of India's most critical coal mining hubs, but unregulated historical mining has caused severe environmental and human hazards. This intervention is vital for ensuring a 'just transition' for affected communities, shifting the government approach from basic physical relocation to sustainable economic empowerment and skill development.

Background

History & Context

The Jharia Coalfield has been plagued by underground fires since 1916 due to unscientific private mining before nationalization. To tackle this, the original Jharia Master Plan was approved in August 2009 with a 12-year timeline and a Rs 7,112.11 crore estimated investment. When that plan expired in 2021 without fully meeting its rehabilitation goals, a committee chaired by the Coal Secretary was formed in August 2021 to review the shortfalls, leading to the newly approved revised framework.

What Changed

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Financial Assistance: BEFORE, compensation and support frameworks often left undocumented residents vulnerable. NOW, both Legal Title Holder (LTH) and Non-Legal Title Holder (Non-LTH) families will receive a direct livelihood grant of Rs 1 lakh.
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Credit Access: BEFORE, resettled families faced severe capital constraints to start new trades. NOW, the government has mandated access to institutional credit support of up to Rs 3 lakh for all rehabilitated families.
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Institutional Support: BEFORE, the focus was heavily skewed toward physical relocation and fire containment by Bharat Coking Coal Limited (BCCL). NOW, a dedicated Jharia Alternative Livelihoods Rehabilitation Fund is established, along with skill training through regional Multi-Skill Development Institutes.

Prelims Angle

NCERT Connection

This topic connects directly to Class 12 Geography Chapter 7 (Mineral and Energy Resources), which details the distribution of coal in India and identifies Jharia in Jharkhand as the largest coal-producing area. The master plan serves as a real-world case study on the socio-environmental hazards of mineral extraction and the complexities of human rehabilitation.

Practice Questions

Q1

With Reference To

With reference to the Revised Jharia Master Plan approved in 2025, consider the following statements: 1. It provides a livelihood grant exclusively to Legal Title Holders (LTH) of land in the affected areas. 2. A dedicated Jharia Alternative Livelihoods Rehabilitation Fund is established under the plan. 3. The original Jharia Master Plan was initiated in the year 2009. Which of the statements given above is/are correct?

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