India's Coal Industry Gears Up For 'Just Transition' Challenges

As India gears up to ensure a just transition in the country, while strengthening the skill ecosystem in an equitable and consistent manner, the NITI Aayog has formed a committee to outline a ‘just transition’ framework for the country, a senior official from their team recently told media.

Experts suggest that majority people working in the formal sector of the economy can be re-skilled and employed in the green jobs but a major question is raised about the informal workers and the ability to re-skill them. Many of them point out the need of a ‘Just Transition’ framework in order to make the shift happen from a fossil fuel based economy to a green economy. The International Labour Organization (ILO) defines ‘just transition’ as a way of ‘greening the economy that is as fair and inclusive as possible to everyone concerned, creating decent work opportunities and leaving no one behind.’

Just Transition in a Coal-Dependent Country

Talks on India’s just transition often raise a major question about the coal mining sector of the economy. India is heavily dependent on coal and in order to ensure the sustained livelihood of people dependent on this sector, a policy framework is required. It is essential to understand the challenges that can be faced due to a just transition from a coal based economy to a greener economy, followed by the implementation and framework needed for the same.

“When we see the coal sector in light of the just transition, two factors need to be considered. One is that of the direct workers employed through mining companies or indirectly through contractors used by the mining companies, ie. the informal workers community. As far as transition is concerned, in Indian context it is not going to happen in a year or two, it will take a long time,” says VK Pandey, General Manager (Environment), Central Mine Planning and Design Institute.

Several people from Bijuri and Kotma municipalities of Madhya Pradesh’s Anuppur district were rendered unemployed after around 10 mines in these two municipalities closed in the last decade. With one mine employing around 500 to 1000 people in these areas, the shutdown of the 10 mines led to around 5,000 to 10,000 people losing their livelihood. Not just direct employees of the mines but even several people indirectly dependent on the coal mines were affected in a negative way.

A study carried out by IIT Kanpur revealed the severe effects of the mine closures on the communities of the area. As earning members of these families lost their source of income, the household expenses as well as children’s education witnessed the brunt of it. Among other issues, it was also found that most girls under the age of 18 stopped studying after class 5 or 8 as the parents couldn’t afford the same. This was accompanied by the culture of early marriages among Kol and Gond tribes owing to which many young girls got married.

However, one of the key findings of this study was the fact that there has been no effort by the government to establish alternate sources of livelihood or provide the people dependent on these mines with new skills to make them employable in other sectors.

A NITI Aaayog publication titled ‘Report of the Inter-Ministerial Committee on Just Transition from Coal’ mentions the key issues that need to be addressed in regard to the transition. Apart from the direct and indirect workers, many aspects of the local economy in a coal bearing area are also dependent on the sector. Thereby any strategy for transition must look into the issue of re-skilling and re-employing these workers.

The CMPDI official further points out that when we think of just transition, there are two very essential things that should be considered. He says, “Firstly, that state governments should play an active role with the coal companies to promote welfare because these companies have substantial funds. Secondly, when we do a mine closing project, the final closure activity should be planned in such a manner that facilitates business transition for the local community.”

He further states that while transitioning, they should also take care of the environmental protection method because unless the environment is restored, it is very difficult for the government or other agencies to conduct any further just studies.

Challenge of Re-purposing Workers in Thermal Power Plants

With an installed capacity of 218 GW in 2024, coal-fired thermal power plants (TPPs) constitute over 70 per cent of India’s annual electricity generation and directly employ around 4 lakh individuals across the country. Presently, about 15 per cent of the installed capacity is at the end-of-life stage and will need to be repurposed. One of the key aspects of re-purposing plans is to address the issue of the vulnerable workforce. A 2024 study by Council of Energy, Environment and Water (CEEW) found that the contractual workers, which include the informal workers, are dependent on the thermal power plants and are vulnerable to repurposing.

The study further states that these workers engaged in the operations and maintenance of the TPPs possess skills specific to the plant’s machinery and thereby to retain employment for them in the repurposed plant, where operations will be different, reskilling or upskilling efforts will be necessary. In order to address that, the workers will require greater support as they have lower educational levels, uncertified skills and limited access to formal reskilling opportunities. However, if the repurposing results in a shrinking of the workforce employed at the plant then the induced livelihoods can be impacted negatively.

Way Ahead in Re-skilling Of Coal Workers for Green Jobs

In 2015, the Ministry of Skill Development and Entrepreneurship set up the Skill Council for Green Jobs (SCGJ) with an aim to address the skilled workforce issue associated with sustainable development and develop worker competencies in renewable energy, sustainable development and environmental issues.

In terms of the NITI Aayog committee entrusted for outlining the Just Transition Framework for India, the Skill Council of Green Jobs (SCGJ) has not been made a part of the committee as of now. While talking about a strategy needed to ensure the transition from coal- based economy, the CEO of SCGJ, Arpit Sharma says, “Once the NITI Aayog report on the framework is out, we can move ahead with making a strategy for the same.”

However, in terms of re-employing workers of the coal industry, Sharma says that the Council has identified certain areas in the solar industry where these workers can be employed.  “The coal workers can be upskilled into solar PV helpers or solar installation technicians and they can certainly be given employment in the rooftop solar sector, “he adds.

A report jointly published by the SCGJ and Sattva Consulting states that in terms of job growth in India, solar energy is projected to host 3.26 million jobs by 2050, followed by wind energy with around 0.18 million jobs by 2030 and the bio-energy and green hydrogen sectors predicting to create 0.27 million and 0.6 million green jobs by 2030, respectively.

The Skill Council of Green Jobs is not working in a full-fledged manner for the coal mining industry as of now, however, they do intend to work in it, do a skill gap study and identify suitable job roles and areas where these workers can be re-skilled.

With a committee now being formed specifically for India’s Just Transition framework, it is essential that the challenges that face the transition process in the coal sector are taken thoroughly into account, so that the livelihoods of several people dependent on the sector remain sustainable in longer run.