In April 2025, a discussion was organized where representatives of the International Trade Union Confederation (ITUC)–Asia Pacific joined to develop strategies on union building through a focus on Just Transition in coal mining and renewable energy sectors. The consultation meeting examined the impact of the shift to clean energy on the current workforce in coal mining and ways to mitigate the risks associated with energy transition.

In the meeting, union leaders emphasized the need for a policy framework that protects the rights and livelihoods of workers and prioritizes inclusivity, social justice, and economic support for those most affected by the decline in coal usage. Unions fear massive impacts on communities that are directly or indirectly dependent on coal mines in the country.

A report of the Indian inter-ministerial committee on Just Transition from Coal mentions that the country’s commitment to achieving net-zero emissions by 2070 necessitates a significant shift from coal-dependent energy production to sustainable alternatives. This poses challenges, particularly for communities reliant on the coal mining sector for their livelihoods. The committee emphasized the need for actionable policies to support this shift.

Representatives of trade unions felt that a comprehensive policy should include gender inclusivity, phased mine closures, upskilling and retention of current workers, creation of well-paid green jobs, social protection measures, and the active engagement of workers in decision-making throughout the transition.

Coal Industry in India

Coal mining in India has a legacy spanning over two centuries, with the first operations beginning in 1774 under the East India Company at Raniganj in the state of West Bengal. In the early years, progress was limited due to low domestic demand.

The landscape shifted in 1853, when the introduction of steam locomotives created a surge in demand, driving higher production. Post-independence, after 1947, the industry underwent nationalization aimed at ensuring scientific development, regulated growth, and meeting the country’s expanding energy needs.

Coal India Limited (CIL) was formed in 1975 with the merger of the National Coal Development Corporation (NCDC) and Coal Mines Authority Limited (CMAL) as the central holding company for coal production in India. Open-cast mining dominates India’s coal output, rising from 561 MT in 2014–15 to nearly 963 MT in 2023–24.

Underground mining has steadily declined from about 49 MT in 2014–15 to about 35 MT in 2023–24, contributing less than 4% of total production. The heavy reliance on open-cast mining underscores efficiency and output gains but also raises environmental, land-use, and sustainability challenges for the future.

Complexity of the Energy Transition Process

India’s energy transition is shaped by a complex balance between coal and renewables. Coal still dominates the energy mix, driven by energy security concerns, affordability, and rising demand. At the same time, renewable capacity is expanding rapidly, signaling long-term structural change.

Stakeholders in the Transition

• Coal Mining: ~3 million people dependent (direct & indirect)

• Brick Industry: 0.7% of GDP | ~10 million employed

• Iron & Steel: 2%+ of GDP | ~2.6 million employed

Beyond jobs, coal remains a vehicle of industrialization, a major revenue source for governments, and a pillar of economic growth.

Energy Justice and Just Transition

Energy transition is not just about technology but about fairness and inclusiveness. Energy justice demands participation in decision-making by all affected communities. This has evolved into the idea of a Just Transition, at the intersection of energy transition and energy justice, ensuring that economic, social, and environmental needs are balanced.

India’s commitment to achieve net zero by 2070 signals a major policy shift towards climate change mitigation and adaptation. A key driver is the goal of domestic energy self-sufficiency, with solar and other renewables serving as pathways to energy sovereignty and independence.

The coal sector is deeply intertwined with India’s economy, society, and regional development. Coal-bearing regions have become monoculture economies, heavily dependent on mining and allied industries. This has created strong economic and social dependence, influencing livelihoods, infrastructure, environmental conditions, state revenues, and overall quality of life.

Importantly, coal reserves are concentrated in economically disadvantaged states, where people rely directly on mining jobs and indirectly on linked activities. Thus, while the closure of coal-based assets is central to a long-term transition, it will be highly disruptive for both the sector and local communities if the transition is not implemented with inclusive stakeholder participation.

Policy Instruments to Enable Just Transition

A. Mine Closure Guidelines 2025

Under the 2025 Mine Closure Guidelines, India is moving towards scientific and socially responsible mine closures.

Closed mines are to be repurposed into:

• Eco-parks and cultural spaces (e.g., Bishrampur’s Kenapara Eco Park, BCCL’s Parasnath Udyan)

• Pisciculture and waterbodies (e.g., Kerketta mine void – CCL)

• Solar projects and orchards (e.g., Sindoor Eco Park & Mango Orchard – ECL)

Funding Guidelines:

• At least 25% of escrow funds (for five years post-closure) must support community development and livelihoods.

• 10% of final closure costs must be dedicated to Just Transformation, designed with local stakeholders.

These efforts aim to transform mining regions into sustainable community assets while advancing the idea of a just transition.

Many abandoned mines have become reservoirs holding water that experts say is safe for use. Communities plan to utilize these vast untapped water resources not only for domestic purposes but also to drive livelihoods. It has been reported that 22 sites across six states—Jharkhand, West Bengal, Odisha, Chhattisgarh, Madhya Pradesh, and Maharashtra—have been identified for pilot projects using water from abandoned mines.

B. District Mineral Fund (DMF)

The DMF enables local-level funding, which is crucial for current coal-mining areas as the country shifts increasingly toward renewables. Mandated by the Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015, under the clause “Safeguarding the interest of affected persons,” the fund is financed by contributions from mining lease holders—30% of the royalty rate for leases granted before 2015 and 10% for those granted after 2015.

C. CSR Activities of Coal Companies

Coal companies have recognized the need to prioritize the welfare of communities directly affected by their operations. Coal India Limited’s (CIL) Corporate Social Responsibility (CSR) policy states that subsidiary companies must use 80% of their CSR funds within 25 km of their project site, mine, or HQ, and the remaining 20% within the state of operation.

Framework for Just Transition

This framework emphasizes a three-fold approach—national, state, and local levels—for a just transition in coal mining regions.

Key issues include:

• Building institutional capacity: Establishing just transition bodies at all levels to ensure comprehensive action.

• Stakeholder consultation: Understanding the needs of those affected by coal mining.

• Financial support: Ensuring affected regions receive backing to build a greener economy.

• Economic diversification: Transitioning coal-dependent areas to sustainable economic activities.

• Environmental restoration: Addressing degradation caused by mining.

• Inclusive decision-making: Ensuring all stakeholders, especially workers, have a say in the transition process so that no one is left behind.

International Dialogue on Just Transition and Workers

Representatives of governments, workers, and employers from ten countries recently met in Johannesburg to explore how national climate commitments can advance decent work and social justice through a just transition.

The international workshop on “Addressing Just Transition in Nationally Determined Contributions (NDCs)—Learning, Leading and Looking Ahead” was organized by the International Labour Organization (ILO) with support from the German Federal Ministry for Economic Cooperation and Development (BMZ) and the Swedish International Development Cooperation Agency (SIDA).

Delegations from Azerbaijan, Brazil, Cambodia, Ivory Coast, Jamaica, Mexico, Morocco, Nigeria, the Philippines, and South Africa shared experiences and strategies to embed just transition principles into national climate plans. While strong political will was a common feature, participants acknowledged persistent challenges, such as limited financing, data gaps, and the need to include informal-economy workers.

From Planning to Implementation

Discussions focused on moving from dialogue to delivery. The NDC Partnership underscored the importance of inter-ministerial coordination and integrating climate, labour, and finance policies throughout the NDC implementation cycle. Dedicated sessions explored how social protection systems can safeguard workers and communities from climate impacts, and how micro, small, and medium-sized enterprises (MSMEs) can become engines of just transition through access to green finance, enabling business environments, digital tools, and skills training.

With continued ILO support and strengthened South–South collaboration, participants pledged to turn the lessons of Johannesburg into concrete national policies that create decent jobs, resilient enterprises, and a sustainable future for all.

Technocratic Approach to Just Transition

In keeping with India’s net-zero ambitions and climate goals, the Government of Jharkhand constituted a multi-department Task Force on Sustainable Just Transition in 2022. The task force has been mandated to assess, estimate, and recommend various steps to the state government for a planned transition process.

It aims to provide key recommendations by identifying innovative pathways for transitioning to a non-fossil-fuel-based ecosystem, assessing the impact on the economy, workers, and communities, identifying opportunities in green sectors, and recommending policy interventions.

However, the task force does not have any worker representatives. It is imperative that those most affected by the transition be represented so that their views are considered in deliberations and policy recommendations. International experience shows that workers’ representation in transition processes ensures that their interests are protected.

References

[i] On 14 April, IndustriALL and ITUC-Asia Pacific organized a consultation meeting in Kolkatahttps://www.industriall-union.org/india-coal-workers-unions-demand-a-just-transition

[ii] ParthaPratimMitra,Overview of India’s Coal Sector: From Dependence to Transition,Presentation made at a work shop on Just Transition in Coal Sector: Building a Workers’ Perspective held by FES India , Ranchi Jharkhand,18-19 August ,2025

[iii] Water to Earnings:How coal is turning on taps across India.Times of India,NewDelhi 0ct 23,2025

[iv] JUST TRANSITION FRAMEWORK FOR A SUSTAINABLE FUTURE IN INDIA’S COAL MINING REGIONS,The Energy ResearchInstitute and MacArthurFoundation,2023https://teriin.org/sites/default/files/2024-02/Just%20Transition%20Framework%20for%20a%20Sustainable%20Future%20in%20India%E2%80%99s%20Coal%20Mining%20Regions.pdf

[v] Tripartite constituents gather in Johannesburg to drive just transition in climate action,Oct 24,2025 https://www.ilo.org/resource/news/tripartite-constituents-gather-johannesburg-drive-just-transition-climate

[vi] https://www.justtransition-jharkhand.in/about-us/

 

(The writer is a retired Special Secretary, Government of India. Views expressed are personal. He can be reached at ppmitra56@gmail.com)