Category: Spotlight
LABOUR INFORMALITY IN THE COAL PRODUCING GEOGRAPHIES IN INDIA: ISSUES AND PERSPECTIVES
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This edition focuses on the theme of “Labour Informality in the Coal-Producing Geographies in India: Issues and Perspectives,” emphasizing a people-centric transition. We have curated a range of perspectives from academics and researchers to emphasise the pressing requirement for a human-focused strategy in the wake of transition to sustainable energy.
As we look to a future powered by greener sources of energy, aligning with India’s net-zero goals, the need to reduce our reliance on coal is of utmost signfi cance. This change would, however, have a direct impact on informal labourers who rely on coal for their living and frequently lack alternative employment prospects or means of social security. It is imperative to prioritise the inclusion of coal workers, especially those who are informally engaged, to ensure their degree of vulnerability is minimised. The purpose of this issue is to create a sense of urgency and need for collaborative eff orts that directly tackle the diffi culties experienced by those reliant on the coal economy in varied ways.
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GROUND SCENARIO IN SARANGIJHARIA IN SUNDARGARH (ODISHA) A REFLECTION ON POSSIBILITIES AHEAD
By Ayushi Saharan, MA Sustainable Development Practice student at TERI SAS, based on her field visits during an internship at TERI
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As we arrived at Sarangjharia, a village about 12 kilometers away from coal mine, we found the locals gathered around a tree with baskets in their hands, waiting for a man climbing the tree in front of us to get them some jackfruit. This is symbolic of the quiet and simple life that people live in the village which is not yet claimed by any mining companies and hence the area remained untouched by any major industries as yet and the village coexist with nature.
According to the villagers, while the majority are engaged in agriculture, one-fourth of the residents are engaged in temporary labour work at MCL. The fact that most of the mine related work is outsourced, the local labour force is drawn from the surrounding villages by the contractors. Given the short duration of employment, fear of exclusion and losing the chances of wages earning opportunity, and due to the lack of alternative employment opportunities around, locals often accept what they are offered. Ironically the poor and uneducated labour force are hardly aware of the nitty gritty of CMPF (Coal Mine Provident Fund) and neither do they have the courage to to inquire about CMPF funds and other deductions from their wages during this short-term engagement by the contractors. Owing to blocked opportunities the labour force complies with norms imposed by the contractors and hardly get a chance to voice their grievances. In the informal labour sector they lack any safety net and hence remains vulnerable. Basic rights of rural populace in and around the coal belt are often denied and dignity gets compromised. It raises questions about access to fair wages, safety net, social security system, quality education and health opportunity, and access to healthy work environment. Over dependence on coal and mono-industry also creates a monopoly and in a way that it restricts growth of other livelihood choices and its market promotion. A balanced view of diversified livelihood options creates market opportunities, enterprises, offers greater choices and competition across multiple players who engage labour and this also provides a space for bargaining and an urge for fairer practices in labour engagement.
An important alternative source of income for the locals comes from forests. Collection of mahua flowers and kendu leaves fetches households an average income of 10,000-30,000 rupees within 1-2 months. The collection is usually done by women and children, bundles are made by men and collected by the forest department for making secondary forest based products.
Agriculture, however, is the main source of income of the village. But it has suffered primarily due to labour unavailability. While the locals can offer 200 rupees as daily wage to work on the fields, MCL offices offer 300 rupees. Therefore, residents prefer to engage in labour work rather than working on fields. However, the older generation and women play an active role in keeping agriculture alive in the village. The staple crops sown and produced are corn, rice, and seasonal vegetables. The fields are rainfed, and surplus is sold to the local weekly market. While schemes like MGNREGA is functional in the village, Ujjwala, Swacch Bharat, Ayushman Bharat, PMJAY, health card issued by state government, and other policies linked to farmer’s welfare doesn’t seem to be reaching the people in the area. In a way, people lack the knowledge about several such schemes and hence could not benefit from these schemes.
Today’s youth in these villages are often allured to pick up non-agricultural wage labour particularly in any coal dependent industry settings. Young boys of Sarangijharia are also known to migrate in groups to cities like Goa for work in fishery sector, work for six to seven months, and return back with the earned income (about 30000-40000) only to spend it away on alcohol. Therefore, the money earned is hardly invested in the region in a productive manner.
The problem of alcoholism is said to be further aggravated by the mining activities given the influx of migrant truck drivers from different states who drive up the demand for alcohol. In the village itself the residents indicated that some households make alcohol using chemicals to derive some additional income. Several cases of loss of young lives owing to consumption of country made liquor have been reported.
Coal industry, MCL in this case and DMF can play crucial role in mapping vulnerable pockets, carrying out a socioeconomic baseline, assessing skill, resource and information gaps, and develop a blueprint in consultation with the credible research institutes and development practitioners to enhance the living condition of people living in and around the coal belt. As part of the Just Transition initiative, it would be logical to impart new skills, enhance sustainable agriculture, demonstrate and encourage adoption of greener practices in manufacturing of local products, and promote diversified livelihood strategy, enhance financial inclusion, health awareness and safety nets. All in all, such measures will help minimize vulnerability, build resilience and improve the quality of life of the poor people living in and around the coal belt. The plans must include those who are engaged in coal sector as contractual labourers and their families but also others who are daily wage earners, agricultural workers, who depend on others’ land and also other socially backward sections who often get alienated or left behind due to their backwardness.
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Local NGO perspective
By Dr Jayanta Mitra, Senior Fellow TERI
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The thought of transition drives one to think of the immediate impact on life and livelihood, local economy, businesses, and the possibilities ahead. Coal phase-out will hit the local people and the labour force hard as they are excessively dependent on coal. Hence, detailed PRA (participatory rural appraisal) and micro-level livelihood planning are essential. A skill centre needs to be established or convert certain industrial facilities into training hubs that local people can access and gain from it. Advocacy with State and industry is crucial.
Agriculture and agri-allied activities, adoption of high-value agricultural practice, organic vegetable hub promotion with market linkage (through a tie-up with NABARD), aggregation centre and end to end solution (seeds to market), etc. would be the proposed action points to minimize potential risks in the wake of coal phase-out. This would address food security challenges and check distressed migration.
Youth entrepreneurship (market assessment, generating micro-enterprise ideas, input supply, value addition, market negotiation) promotion is the key towards promoting a vibrant local economy.
Jharkhand is known for its abundant forest land and forest produce. Technology should be leveraged meaningfully to generate business. For instance, the installation of an oil expeller (could be solar operated) can help market oil from locally available oil seeds and achieve a scale that can engage local poor and tribal communities who are dependent on the forest. Along with this, mobilization of farmers collectives, formation, and strengthening of FPOs, institutional linkages, digital solutions, multi-stakeholder coalition (GO-NGO-CSR-Technical/Research institute) for effective advisory, disease control, market negotiation, etc. Further, existing local or artisanal knowledge and skills need to be mapped and marketed around that may be created for gainful engagement of the local populace.
Systematic documentation of the existing and perceived challenges in the context of coal transition and open multi-stakeholder dialogue on the theme may enable in comprehending the complexity and map opportunities and possible action points.
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REPURPOSING COAL ASSETS FOR A SUSTAINABLE TRANSITION
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I am pleased to announce that we are back again to place before you the 5th edition of our bi-annual Newsletter – ‘Vichaar
Vimarsh’ and share rich perspectives of researchers, academia, professionals from coal companies, civil society and think
tanks around the core theme of “Repurposing of coal assets for a sustainable transition”. I am sure such an exchange of
knowledge will not only connect various stakeholders who are willing to engage actively in charting out a new trajectory
and contribute in building a low carbon economy.
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Just Transition: Future of Coal & Pathways to Low Carbon Footprint
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TERI, in partnership with the Indian Institute of Technology (Indian School of Mines), Dhanbad, hosted a seminal national seminar on “Just Transition: Future of Coal & Pathways to Low Carbon Footprint” in Kolkata on January 31, 2024. This pivotal seminar brought together leading figures from the energy sector, academia, and policymaking to discuss the pathways for India’s energy transition from coal to sustainable alternatives. It served as a dynamic forum for examining innovative solutions for the reutilization of coal mines, green support for coal-dependent MSMEs, and the development of a sustainable, equitable transition framework. The discussions were underpinned by the urgent need for a Just Transition, focusing on safeguarding community and worker welfare amid the move from coal, and included debates on policies for retraining, social protection, and fostering job growth in new, green industries. The seminar’s agenda was thoughtfully designed around thematic sessions on repurposing closed mines, enhancing economic competitiveness alongside environmental sustainability, and opportunities for reskilling in green jobs. A concluding plenary session dedicated to co-creating actionable strategies for a resilient, low-carbon future in the coal sector underscored The seminar had a structured agenda that included an introductory session, Thematic session I: Repurposing of closed mines and diversification of the local economy, Thematic session II: Balancing Economic Competitiveness and Environmental Sustainability: Green Transition for Coal Dependent MSMe’s, Thematic session III: Reskilling and Upskilling for Green Jobs – Opportunities as the Coal Sector Transitions to a Low-Carbon Economy and Plenary session: Charting a Sustainable Path: Co-Creating Action for a Low-Carbon, Resilient Future in the coal sector.