Jharkhand’s State Capitalism: Displacements by Mining
Madhusudan Mahto, a 60-year-old resident of Dhanbad district in Jharkhand state, is one of many paying the price for successive state governments' careless embrace of state capitalism. Coal mining has been ongoing in Jharkhand since 1901. Today, around 6,486 hectares of land in the state affected by the mining activity, while about 75% of the state’s population remains economically dependent on agriculture. Although mining is a lucrative source of revenue for the state and is prioritised over vital sectors like agriculture, it compromises the well-being of millions of residents who are not employed in the mining sector. And this is apart from significant environmental and health costs associated with the extraction of natural resources.
About the Issue:
The relentless expansion of mining operations has led to widespread displacement of local communities. According to reports, thousands of families have been uprooted from their ancestral lands, disrupting traditional lifestyles and livelihoods. The lack of adequate resettlement plans worsen the plight of these displaced individuals, leaving many without secure housing or alternative means of income.
Environmental degradation is another critical consequence of Jharkhand’s focus on state capitalism through mining. The extensive removal of vegetation cover has resulted in soil erosion and loss of biodiversity. Water sources have been contaminated by mining runoff, leading to shortages of clean drinking water and affecting agricultural productivity. Further, air pollution from mining activities has been linked to respiratory illnesses among local populations. These environmental impacts pose long-term threats to the sustainability of Jharkhand’s natural resources and the health of its inhabitants.
Moreover, the society of Jharkhand is being strained as mining activities often lead to conflicts over land rights and resource allocation. Indigenous communities, particularly the Adivasis, face significant challenges in protecting their land from encroachment by mining companies. Legal battles and protests have become commonplace.
The economic benefits of mining are also unevenly distributed, often failing to reach the broader population. While the state government garners substantial revenue from mining royalties and taxes, a significant portion of these funds doesn’t appear to be reinvested into critical areas such as education, healthcare and infrastructure. This misallocation perpetuates socioeconomic disparities, as rural communities continue to struggle with limited access to essential services. The prioritisation of mining adversely impacts the potential for diversified economic growth, hindering the overall development of the state.
Furthermore, the reliance on coal mining has hindered the adoption of more sustainable and renewable energy sources in Jharkhand. Investments in renewable energy infrastructure are minimal, which not only limits the state’s ability to transition to cleaner energy but also locks it into a dependence on fossil fuels that are subject to volatile global prices and increasing environmental regulations. This lack of diversification in the energy sector poses risks to long-term economic stability and environmental sustainability, as the global shift towards greener energy sources continues to accelerate.