Just Energy Transition: Economic Implications for Jharkhand

The report estimates that an immediate low-carbon transition would result in a cumulative annual economic impact of INR 725.9 billion (USD 8.7 billion) for stakeholders in Jharkhand. The most significant losses are concentrated in the solid fossil fuel mining sector, which would see an annual impact of INR 608.3 billion, compared to INR 117.6 billion for the power generation sector. Key fiscal risks include a potential 5% decline in state revenue receipts and an erosion of 7% of the state's Gross State Domestic Product (GSDP) due to livelihood losses. The analysis highlights the vulnerability of indirect and contractual workers who lack the severance benefits available to direct employees. To mitigate these effects, the report recommends that state-owned enterprises diversify into green hydrogen, energy storage, and solar energy, while the state government develops a comprehensive Just Transition plan focusing on reskilling and social safety nets.

• The total annual economic implication of a low-carbon transition for stakeholders in Jharkhand—including PSUs, the workforce, the state government, and the community—is estimated at INR 725.9 billion (USD 8.7 billion).
• The economic impact is heavily skewed toward the mining sector, with solid fossil fuel mining stakeholders facing annual losses of INR 608.3 billion, while those in power generation face losses of INR 117.6 billion.
• The transition poses a significant fiscal risk to the state government, with potential revenue losses estimated at approximately 5% of current state revenue receipts, specifically impacting taxes and royalties from mining.
• Livelihood losses resulting from the transition could lead to an erosion of 7% of Jharkhand's Gross State Domestic Product (GSDP).
• Contractual and indirect employees are more vulnerable to the transition than direct employees because they typically do not receive severance pay or relocation benefits during asset closures.
• A substantial portion of the formally trained workforce in Jharkhand is dependent on the mining sector, with one in four such workers directly employed by PSUs in solid fossil fuel mining.
• To mitigate economic shocks, the report suggests that state-owned mining and power companies diversify into sectors such as green hydrogen, energy storage, clean mobility, and solar energy.

APA

Habib, T., Khurana, S., & Sen, V. (2023). Just Energy Transition: Economic Implications for Jharkhand. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Just-Energy-Transition-Economic-Implications-for-Jharkhand-1.pdf

Chicago

Habib, Tariq, Saarthak Khurana, and Vivek Sen. Just Energy Transition: Economic Implications for Jharkhand. Climate Policy Initiative, 2023. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Just-Energy-Transition-Economic-Implications-for-Jharkhand-1.pdf.

Wikipedia

{{cite report |last1=Habib |first1=Tariq |last2=Khurana |first2=Saarthak |last3=Sen |first3=Vivek |title=Just Energy Transition: Economic Implications for Jharkhand |publisher=Climate Policy Initiative |date=December 2023 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Just-Energy-Transition-Economic-Implications-for-Jharkhand-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{habib2023just, author = {Habib, Tariq and Khurana, Saarthak and Sen, Vivek}, title = {{Just Energy Transition: Economic Implications for Jharkhand}}, institution = {Climate Policy Initiative}, year = {2023}, month = dec, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Just-Energy-Transition-Economic-Implications-for-Jharkhand-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }