The Transition to Renewable Energy in Jharkhand: A Looming Crisis of Lost Livelihoods and Insufficient Reskilling
For over a century, Jharkhand has been recognized for its abundant mineral reserves, making it a pivotal center for coal mining activities. India, being a developing economy, faces immense challenges in transitioning entirely to renewable energy sources to combat climate change by 2050. The global pressure, sometimes through UNDP, to achieve this ambitious goal presents a formidable task, particularly in regions like Jharkhand, where coal mining has played a significant role in the state’s economy and livelihoods. The state is today grappling with a significant challenge — the ever-increasing demand of coal to meet active consumption for thermal power generation and electrification while being pushed to make just transition a reality.
This transition, while essential for environmental sustainability, poses a grave threat to the local population, who have depended on these jobs for their livelihoods, both legally and illegally. Despite funds being available through the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), the on-ground reskilling measures are insufficient, leaving many locals uncertain about their future.
Alternate Livelihoods, but at what cost?
For generations, both local residents and migrant laborers have relied on employment in these mines, creating a deep-rooted connection to this industry. However, their livelihoods now face imminent jeopardy. A significant concern lies in the absence of practical alternative sources of income and the reluctance to embrace the existing cleaner alternatives. For those who have become dependent on coal, even through illegal means, it represents a straightforward means of earning daily wages through manual labour, which appears more reliable to them than investing time and resources in unfamiliar alternatives that lack their trust and appeal. The coal mining industry has been the backbone of Jharkhand’s economy, and its decline threatens to create economic distress in the region. The absence of diverse industries or employment opportunities makes it difficult for these communities to transition smoothly.
The MNREGA Funds and Their Underutilization
The Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) was enacted to provide employment opportunities to rural households and reduce poverty. It allocates substantial funds for skill development and employment generation in rural areas. It is undeniable that some of the best case studies of good governance and utilisation of resources come in the form of inter-cropping and horticulture from districts like Khunti and East Singhbhum. However, the utilization of existing funds for reskilling, alternative employment programs and first and foremost for building awareness and acceptance towards them in Jharkhand has been far from optimal. The current programs are often inadequate, poorly implemented, and fail to provide the necessary skills for workers to find employment in emerging sectors like renewable energy, agriculture, or other local industries.
Recommendations for a Sustainable Transition
Investment in Renewable Energy: Jharkhand has several projects in Solar and Biomass underway but could focus on developing its renewable energy sector of Hydro and mini and micro-grids further, which has the potential to create new jobs. Government incentives such as Jawaharlal Nehru National Solar Mission (JNNSM), accelerated depreciation and tax benefits for wind energy projects and private investments can help accelerate this transition.
To cite two examples, Germany’s energy transition policy, known as Energiewende, has been a model for Europe. It includes feed-in tariffs and incentives for renewable energy projects, resulting in substantial investments in wind, solar, and hydro energy. This transition has created numerous jobs in the renewable energy sector. Secondly, Denmark has a strong tradition of community-based renewable energy projects. Local communities often form cooperatives to develop and own wind turbines and solar installations. The Danish government has provided various incentives and favorable policies to encourage community ownership of renewable energy projects. This includes feed-in tariffs and tax benefits. These community-owned projects have not only created jobs in the construction, operation, and maintenance of renewable energy infrastructure but also empowered local communities to have a stake in their energy production.
Effective Reskilling Programs: The government should allocate a portion of MNREGA funds specifically for reskilling initiatives. These programs should be tailored to the needs of local communities and provide relevant skills for the emerging job market of renewables.
Diversification of Local Industries: Encourage the diversification of local industries to create more employment opportunities. This could include promoting small and medium-sized enterprises (SMEs) and agribusinesses diversifying into production, distribution, retail and export channels.
Community Involvement: Involve local communities in decision-making processes related to the transition. Their insights can help identify sustainable solutions that address their unique challenges. Discussion with locals relocated to cleaner facilities farther from the mines mostly revealed unhappiness at the loss of daily income, increase of financial burden (gas connection instead of usage of coal freely available, water bills instead of free access from local water bodies) while being unable to tackle problems of rising waste in the area.
Social Safety Nets: Implement social safety nets to support those who are temporarily unemployed during the transition. This could include ration assistance, healthcare, and education support for affected families.
The transition to renewable energy in Jharkhand is a critical step towards a sustainable future, but it must be managed with sensitivity and foresight. The state needs to take immediate action to address the loss of jobs in the coal mining sector and provide effective reskilling measures to ensure that the local population can participate in the emerging green economy. By doing so, Jharkhand can not only mitigate the adverse effects of the energy transition but also create a brighter and more inclusive future for its residents.
