Indian Govt clears 5,940 cr Jharia plan to tackle mine fires and Rehabilitation

The Indian Cabinet Committee on Economic Affairs, chaired by Indian Prime Minister Narendra Modi, on Wednesday approved the Revised Jharia Master Plan (JMP). 

Image Source: WaterVagabond

This clears ₹5,940.47 crore for addressing long-standing issues of underground coal fires, land subsidence, and rehabilitation of affected families in the Jharia coalfield region.

The updated plan adopts a phased approach to prioritize the most vulnerable sites, ensuring urgent intervention in areas severely impacted by mine fires and ground subsidence. 

The Jharia coalfield, located in Jharkhand’s Dhanbad district, has faced decades of environmental and safety hazards due to unregulated mining and persistent underground fires.

A key highlight of the Revised JMP is its stronger focus on sustainable livelihoods for displaced families. 

Both Legal Title Holder (LTH) and Non-Legal Title Holder (Non-LTH) households will receive a Livelihood Grant of ₹1 lakh and access to institutional credit support up to ₹3 lakh, aimed at fostering economic self-reliance.

To support long-term economic stability, the government will establish a dedicated Jharia Alternative Livelihoods Rehabilitation Fund. 

Skill development programmes will be expanded in partnership with local Multi Skill Development Institutes to help the resettled population access diverse income opportunities.

In addition to financial assistance, comprehensive infrastructure development is planned at the resettlement sites. 

New townships will be equipped with essential services including roads, electricity, water supply, sewerage systems, schools, hospitals, community halls, and training centres. 

The infrastructure rollout will follow recommendations of the Committee for Implementation of the Revised Jharia Master Plan.

The decision marks a major policy step towards balancing industrial activity with environmental safety and social responsibility in India’s key coal mining hub.