Cabinet clears Rs 5,940 crore Jharia Master Plan: The resolution to douse a 100-year-old fire in Jharkhand, explained

The Union Cabinet has approved the revised Jharia Master Plan (JMP) to tackle the century-old fire and land subsidence crisis in Jharkhand’s Jharia coalfield, and rehabilitate affected local families.

The plan, cleared by the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi, has a financial outlay of Rs 5,940.47 crore.

The revised master plan emphasises phase-wise rehabilitation of families living in the most vulnerable locations, alongside efforts to extinguish underground fires and provide long-term infrastructure and livelihood support.


A livelihood grant of Rs 1 lakh and credit access up to Rs 3 lakh will be extended to both legal and non-legal title holder families.

Comprehensive civic amenities—such as schools, roads, water, hospitals, and community spaces—will be developed at new resettlement sites. A dedicated Jharia Alternative Livelihoods Rehabilitation Fund will also be created.

The revised plan comes more than a decade after the original Jharia Master Plan was first approved in 2009 with an estimated investment of ₹7,112.11 crore. Its implementation period ended in 2021.

A fire raging since 1916

According to a report by the Press Trust of India, the first incident of fire in the Jharia coalfield was reported in 1916.

Since then, multiple underground fires have emerged, mainly within the overburden debris caused by decades of unregulated mining. Before nationalisation in 1971, these mines were operated by private firms using unsafe and unscientific practices that paid little attention to safety or environmental impact.

A 1996 high-power committee set up by the Centre identified 77 fires across 41 collieries in the Jharia region, managed today by Bharat Coking Coal Ltd (BCCL). Despite earlier relocation attempts—around 2,800 families were shifted under the original plan—the fire zone remains active in many areas.

Coal India and BCCL will now lead firefighting and rehabilitation efforts.

Coal Minister G Kishan Reddy, in late 2024, had confirmed that PM Modi had directed the ministry to prepare a comprehensive action plan. The revised plan focuses not just on relocation but also economic self-reliance for affected families through skill development, credit support and job opportunities.

The Jharia coalfield is home to some of India’s best-quality coking coal, essential for steel production. However, the fires continue to cause land subsidence, toxic emissions, and widespread health and environmental damage.