News Brief

Modi Government Clears Rs 5,940 Crore Plan To Tackle Fires And Rehabilitate Families In India’s Burning Coal Belt

Arun DhitalJun 26, 2025, 11:28 AM | Updated 11:28 AM IST
Jharia Coalfield Rehabilation (X/@CoalMinistry)

Jharia Coalfield Rehabilation (X/@CoalMinistry)


The government on Wednesday (25 June) approved a revised master plan with an outlay of Rs 5,940 crore, placing greater focus on creating sustainable livelihood opportunities for families affected by the ongoing underground coal fires in Jharia, Jharkhand, the Cabinet Committee on Economic Affairs (CCEA) said in a statement.

Jharia, located in Dhanbad district of Jharkhand, is one of India’s oldest coal mining regions and has been affected by underground fires for over a century.

The continous fires have rendered large areas uninhabitable and dangerous, forcing successive governments to attempt relocation and rehabilitation efforts.

A key focus of the revised plan is not just to relocate affected families but also to help them rebuild their lives.

This includes offering training for new skills and creating job opportunities so that families can earn a stable income after being moved.

Each affected family, whether they legally own their land or not, will receive a livelihood grant of Rs 1 lakh.

They will also get access to loans of up to Rs 3 lakh through official credit channels to start small businesses or income-generating activities.

These facilities will be developed based on expert recommendations to ensure families get a decent standard of living.

As part of the livelihood support measures, a dedicated Jharia Alternative Livelihoods Rehabilitation Fund is to be established to promote livelihood-related activities.

Skill development initiatives will also be carried out in collaboration with Multi-Skill Development Institutes operating in the region.

According to a Times of India report, the Jharia Master Plan, aimed at controlling underground fires and rehabilitating affected families, was originally approved by the Centre in 2009 with a budget of Rs 7,112 crore and a 10-year timeline. The plan expired in 2020.

The revised master plan aims to deal with long-standing issues of underground coal fires, land sinking in the dangerous Jharia coalfield area.

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