Historical Context in the U.K.
The U.K. coal industry shrank from the mid-1950s due to cheaper energy alternatives and the decline of heavy industries.
Most coal mines closed between the mid-1980s and early 1990s, resulting in significant job losses
Former miners experienced a 40% drop in earnings in the year following mine closures, with reduced wages persisting for up to 15 years.
Even with government support, such as severance packages and unemployment benefits, many miners and communities never fully recovered.
Implications and Challenges for India
India’s coal demand is expected to peak between 2030 and 2035, with both new and old mines operating and closing.
Coal India, Ltd. has already shut down numerous mines, highlighting the need for transition planning.
Lessons from the U.K. indicate that India must prepare for significant financial impacts on displaced coal workers, including informal sector workers.
Areas like Odisha, Jharkhand, and Chhattisgarh heavily depend on coal mining, making the socio-economic impact of mine closures severe.
India lacks detailed micro labor data, making it difficult to track and study the impacts of mine closures over time
Way Forward
India needs comprehensive plans including labor market policies, sectoral training, public investment, and income support to manage the transition effectively
Training coal workers for new sectors is essential but challenging, requiring understanding of local job markets and skill needs.
Regions dependent on coal need strategies for economic diversification to attract private investment and create new job opportunities.
Utilize existing welfare schemes like the Mahatma Gandhi National Rural Employment Guarantee to support communities in coal regions during the transition.
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