Jharkhand, which still relies on Coal and Petroleum for nearly one-third of its total State revenue, could earn far more by moving towards a low-carbon industrial economy, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). The study estimated that between 2026 and 2070, the State could generate an additional Rs. 6.7 lakh crore if it builds its future around green industries instead of fossil fuels.
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Heavy Cost, Larger Long Term Gains
The research noted that the economic shift will not come cheap. Jharkhand may need to invest around Rs. 21.52 lakh crore over five decades to gradually exit coal mining, thermal power, and fossil-fuel-linked steel production. Of this, Rs. 1.05 lakh crore would be required solely for labour-linked measures such as reskilling, social support, and rehabilitation for workers and communities dependent on coal.
IEEFA’s lead researcher Shantanu Srivastava called the transition “a large-scale restructuring of carbon-heavy assets and an opportunity to build fresh low-carbon capacity backed by unprecedented capital inflows.” The report warned that a continued dependence on coal revenue would expose the State to rising financial risk as global consumption declines.
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New Industrial Base, Renewable Potential
The report pointed out that Jharkhand’s mineral strength, land availability, and renewable energy potential position it strongly to become a national hub for green manufacturing. Industries such as electric vehicles, solar modules, battery storage systems, and green hydrogen production could form the backbone of a new economy. The report also highlighted opportunities in natural farming, carbon markets, and climate-resilient rural livelihoods.
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Risk and Opportunity Both, Experts Said
Energy transition expert Soni Tiwari said the shift is “both risky and full of opportunity”. She argued that if the State acts early, it can protect its workforce from the decline in coal while positioning itself as a leader in India’s clean energy growth story. Clear and stable industrial policy, the report noted, could help Jharkhand attract billions of dollars in concessional and private investment, supporting new industrial clusters and clean energy infrastructure.
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