This article appeared in The Economic Times
Today, the region stands as a stark paradox: rich in coal and industrial infrastructure, yet choking on resources that once made it prosperous. The air is thick with pollution, rivers flow contaminated and the economic model that once promised eternal employment is now creating a landscape of uncertainty. The imperative is clear: DV must urgently transition from a coal-based past, or risk terminal decline. Evidence of the coming decline is everywhere:
► In Dhanbad, India’s ‘coal capital’, nearly half the mines are abandoned or non-operational. By 2030, 80% of its mines will cease operations due to exhausted reserves or unprofitability. This story echoes across the Valley. Coal production in West Bengal’s Raniganj has plateaued at about 40-50 MT per year. Once the country’s largest coal producer, the Damodar basin has now fallen to third place, overtaken by coalfields in Odisha and Chhattisgarh.
► Downstream industries are faring no better. Jharkhand, sitting on mountains of coal, is ironically, a net importer of electricity. Ageing thermal power plants at Patratu, Bokaro, Bandel and Kolaghat have shut down. Overall, less than 5% of India’s thermal power capacity remains here. Even Damodar Valley Corporation (DVC)’s multi-purpose dams, designed for flood control, irrigation and hydropower, are silting up. Their power generation is minimal, and their flood-control capabilities are increasingly compromised.
But this is not just an economic crisis. It’s a human one. Over 2 lakh workers face the spectre of job losses. The region’s workforce participation rate is 30%. Without a viable alternative, the region is staring at a socioeconomic vacuum of immense proportions.
Yet, within this crisis lies an unprecedented opportunity. The same assets that defined the valley’s industrial age can be repurposed to build its green future. An August 2025 iFOREST Assessment, ‘Transforming India’s Coal Capital’, reveals that Dhanbad, Bokaro and Ramgarh (DBR)—the core of the valley—have the potential to become a major green industrial corridor.
The region has over 1 lakh ha of barren and mining-ravaged land, a potential site for solar farms capable of generating up to 10 GW of clean power by 2030. Reservoirs at Maithon, Panchet, and Tenughat can host floating solar projects and become the foundation for a green hydrogen industry.
With India pushing for hydrogen-based steelmaking and fertiliser production, DBR—with its existing steel and fertiliser plants and water infra—is uniquely positioned to become a hub for green hydrogen, green steel and green fertiliser. Also, repurposed coal mines into solar farms, industrial parks, or even as carbon sinks can drive local employment and economic diversification.
Infrastructure is already in place: robust connectivity via national highways and railways, and proximity to upcoming Amritsar-Kolkata Industrial Corridor. Most importantly, the region has a young, resilient workforce. To realise this potential, however, a good strategy is essential.
► Plan green GoI must partner with states to create a new blueprint for DV, transforming it from a traditional coal economy into a vanguard of green development. A dedicated Green Growth Plan for the DBR region should be the starting point. In addition, DVC must diversify into a green energy company.
► Just transition Workers and communities who built the coal economy must not be left behind. This requires investment in skilling, social protection and enterprise development. Jharkhand must prepare a ‘just transition policy’ to ensure that the move to a green economy is equitable and inclusive. Germany’s Ruhr Valley faced an identical crisis with the decline of coal. It chose a path of proactive transformation, investing in tech, education and culture. Its last coal mine closed in 2018. But today, former industrial sites are vibrant museums, universities and green spaces.
The valley now stands at the same crossroads. It has given its energy, environment and labour to build India. But it must now face the dual realities of depleting coal reserves and global shift toward clean energy. Ruhr teaches us that transformation cannot be left to chance. It requires foresight, planning and investment. If India acts decisively, Damodar Valley can avoid decline. Instead, it can lead the green transition in eastern India.
Chandra Bhushan is one of India’s foremost public policy experts and the founder-CEO of International Forum for Environment, Sustainability & Technology (iFOREST).