Industry, Mining and Industrial and Rehabilitation Policy
2. Where the minerals lie, and how much coal
A mineral’s location is the most examinable fact in this area, and the table groups the principal districts as the yearbook states them. Coal lies in the Damodar valley and the coalfields of the north and east, iron ore and copper in the south-east and the Singhbhum belt, and bauxite and mica in the plateau districts of the west and north.
| Mineral | Principal districts | Teaching note |
|---|---|---|
| Coal | Bokaro, Deoghar, Dhanbad, Giridih, Godda, Hazaribagh, Palamu, Pakur, Ranchi | Jharia and North Karanpura are the largest fields |
| Iron ore (hematite) | West Singhbhum | West Singhbhum hematite belt; ore for the steel plants of the belt |
| Copper ore | Hazaribagh, East Singhbhum | Ghatsila smelter in East Singhbhum |
| Uranium | East Singhbhum (Jaduguda, Bhatin, Narwapahar, Turamdih) | Mined by Uranium Corporation of India Ltd |
| Bauxite | Dumka, Gumla, Latehar, Lohardaga, Palamu | Plateau districts of the west and south |
| Mica | Giridih, Koderma | Koderma is the traditional centre |
| Kyanite | Saraikela-Kharsawan, West Singhbhum | Jharkhand is a leading producer |
| Limestone | Bokaro, Dhanbad, Garhwa, Giridih, Hazaribagh, Palamu, Ranchi, East and West Singhbhum | Input for cement and steel |
The coal resources table below gives the reserves and resources by coalfield as on 1 April 2013 (Coal Directory of India, reproduced in the yearbook). The state’s coal resources total about 80,700 million tonnes on that date, and the largest fields are Jharia, North Karanpura and Rajmahal, with Jharia (about 19,430 million tonnes) the largest of the three listed here.
| Coalfield | Total resources, million tonnes (1.4.2013) |
|---|---|
| Jharia | 19,430 |
| North Karanpura | 18,279 |
| Rajmahal | 16,122 |
| East Bokaro | 8,145 |
| South Karanpura | 6,571 |
| West Bokaro | 5,063 |
| Aurangabad | 2,997 |
| Raniganj (Jharkhand part) | 2,036 |
| Ramgarh | 1,264 |
| Total (all fields in the state) | 80,701 |
3. Industrial policy: from freight equalisation to the 2026 drafts
The stable core of industrial policy is a pattern: each state tries to offer a cost advantage (land, subsidy, tax and power) because the old advantage of minerals was taken away. The freight equalisation policy (1952 to 1993) ended the mineral advantage by equalising delivered prices of coal and steel across India, so industry gravitated to markets and ports. Jharkhand’s own policies since 2000 are a response to that history.
| Instrument | What is recorded | Status |
|---|---|---|
| Industrial and Investment Promotion Policy 2016 | Launched by the state; framework for the Global Investors Summit held in Ranchi on 16–17 February 2017 (official notice) | Superseded; the state later described it as the basis of its investment push |
| Ground-breaking of ventures, May 2017 to December 2018 | 504 ventures, projected investment Rs 50,627 crore, 72,682 direct jobs (state account) | Government claim; projections, not verified outcomes |
| Industrial and Investment Promotion Policy 2021 | Notified in an Extraordinary Gazette on 13 July 2021 (one secondary source); launched at an investors’ meet in New Delhi in August 2021 | Cabinet approval and validity period not confirmed here; check the gazette |
| Industrial Investment Promotion Policy 2026 and Textile, Apparel and Footwear Policy 2026 | Draft versions published for public comment on the state’s single-window portal; reported draft terms include a 20 per cent capital subsidy for MSMEs up to Rs 15 crore and 25 per cent for other units up to Rs 30 crore (secondary report) | Released as drafts in mid-2026; no notification was found in a check in October 2026, so confirm on the single-window portal |
4. Displacement law: the rehabilitation policy and the courts
Mining, dams and plants took land that was often tribal and forested. The Land Acquisition Act, 1894 governed acquisition until the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR, in force from 2014) replaced it nationally. Before 2013, Jharkhand framed its own Rehabilitation and Resettlement Policy, 2008 (JRRP-08), approved by the state cabinet in July 2008 (secondary report). The policy text, read from an unofficial copy, sets out the rules that matter for an answer.
| Feature | Provision in the 2008 policy | Para |
|---|---|---|
| Projects covered | Iron and steel, aluminium, power generation, cement, and others the state notifies; industrial estates excluded | 3.1(t) |
| Social impact assessment | Mandatory where 100 or more families are displaced | 4.1, 4.6 |
| Who is an affected family | Landless and labour families resident 15 years (non-scheduled areas) or 30 years (scheduled areas), certified by the Gram Sabha | 3.1(b)(ii) |
| Jobs | At least one eligible person per nuclear family that loses land | 7.11.1(a) |
| Annuity | Not less than Rs 1,000 a month per acre lost for 30 years, where no job is given | 7.12 |
| Subsistence | 25 days of minimum agricultural wages a month for one year | 7.14 |
| Profit share | One per cent of annual net profit for commercial projects that are not public-sector undertakings | 7.13.1 |
| Gains on resale of land | 80 per cent of net unearned income from transfer of acquired public-purpose land is shared with those displaced | 6.25 |
| Scheduled Tribes | Tribal Development Plan for 100 or more ST families; resettlement in the same Scheduled Area in a compact block; one-third of compensation paid at the outset | 7.18.1 to 7.18.3 |
| Unused land | Reverts to the state if not even partly used in five years, or not fully used in 15 years | 6.24.2 |
Two landmark judgments shape the constitutional side. In Samatha v State of Andhra Pradesh (1997, AIR 1997 SC 3297) the Supreme Court held that land in Scheduled Areas could not be leased to non-tribal persons or private companies for mining, and that mining there was open only to the state corporation or tribal cooperatives, subject to the forest and environment laws. The Fifth Schedule and the Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA) require the Gram Sabha to be consulted in Scheduled Areas, and the policy repeats that requirement (para 1.4 and 6.15.2).
5. Cases of displacement and the mines that followed
Koel Karo. The 710 MW Koel Karo hydro project on the Koel and Karo rivers was proposed in 1973 and drew a long movement. Its displacement was reported at about 3,282 families in Gumla and 1,157 in Ranchi, most of them indigenous (Down To Earth, March 2001). On 2 February 2001 police fired on a large gathering at Tapkara (then in Ranchi district, now in Khunti). Accounts of the number killed and injured differ, and the Indian People’s Tribunal on Environment and Human Rights later held the firing illegal. The movement became part of the campaign for a separate state.
Subarnarekha. The Subarnarekha Multipurpose Project, under a 1978 agreement of the three riparian states, comprises the Chandil Dam and Galudih Barrage on the Subarnarekha and the Icha Dam and Kharkai Barrage on the Kharkai. Chandil is the most complete part; Icha is the most contested, because it would submerge villages in East and West Singhbhum and tribal communities refused consent for land acquisition (secondary sources; check the Water Resources Department for current status).
Jharia. Underground fires in the Jharia coalfield have burned since 1916. The Jharia Master Plan, approved in 2009 at about Rs 7,112 crore over ten years, divided the work between Bharat Coking Coal Ltd (fire-dousing and resettlement) and the Jharia Rehabilitation and Development Authority (underground survey and infrastructure). A pilot township at Belgaria in Dhanbad’s Baliapur block began relocation in 2003. The master plan expired in August 2021, and a revised plan was reported in June 2025 at about Rs 5,940 crore (secondary reports, differing on the scale of families relocated).
| Case | Year and fact | Lesson for an answer |
|---|---|---|
| Tilaiya, Konar, Maithon and Panchet dams (DVC) | Commissioned 1953, 1955, 1957 and 1959; Panchet is in Dhanbad | Early multipurpose projects; flood control with power |
| Koel Karo | Proposed 1973; firing at Tapkara on 2 February 2001 | Consent and Gram Sabha consultation as the fault line |
| Subarnarekha (Icha) | 1978 agreement; Icha contested by tribal communities | Inter-state projects are slow and contested |
| Jharia fire | Fire since 1916; plan of 2009; expired 2021 | Mining hazard creates its own displacement |
6. Mining revenue, the District Mineral Foundation and public-sector industry
Mineral royalty is fixed by the Union under the Mines and Minerals (Development and Regulation) Act, 1957, so a mineral state gets royalty rather than the value added downstream. The MMDR Amendment Act, 2015 added Section 9B, which requires a District Mineral Foundation (DMF), a non-profit trust in mining-affected districts, funded from royalty. The Centre’s scheme for mining-affected areas (PMKKKY) was launched in September 2015. Jharkhand framed its DMF Rules in 2016. A 2018 analysis reported that the state’s twelve mining districts had accrued about Rs 2,732 crore of royalty since 2015-16 and sanctioned about Rs 1,743 crore for works, with about Rs 537 crore spent by then. These are dated secondary figures; the DMF accounts are the primary source.
Public-sector industry in the belt also carries a history of its own. Heavy Engineering Corporation was incorporated at Ranchi on 31 December 1958 to make heavy capital equipment, with a Czechoslovak collaboration for the heavy machine tools plant (Wikipedia; a 2023 report describes its furnaces as cold and its working capital short). Tata Iron and Steel Company was registered in 1907, made steel from 1912, and Sakchi was renamed Jamshedpur on 2 January 1919. The Bokaro plant’s first blast furnace was blown in on 2 October 1972 (secondary source). These are the anchors for the belt’s industrial history.
Key takeaways
- Mineral wealth is concentrated: coal in the Damodar valley and the northern and eastern coalfields, hematite and copper in the Singhbhum belt, bauxite and mica in the plateau districts; the 2013 yearbook gave the state more than a quarter of national coal resources and about 26 per cent of hematite.
- Industrial policy answers the loss of the mineral advantage after freight equalisation (1952 to 1993): JIIPP 2016 and 2021 were notified, and the 2026 industrial and textile policies were released in draft in mid-2026; a draft is not a notified policy.
- The 2008 rehabilitation policy requires a social impact assessment for 100 or more displaced families, a job for one person per family losing land, an annuity of Rs 1,000 a month per acre, and a Tribal Development Plan for tribal displacement.
- Samatha (1997) bars leasing Scheduled Area land to private companies for mining; PESA (1996) requires Gram Sabha consultation; both are the constitutional spine of displacement questions.
- Displacement cases (Koel Karo, Subarnarekha Icha, Jharia) show the recurring conflict between development and tribal consent; date each case and check the current status before quoting any figure.
- Mining royalty goes to the state and to the District Mineral Foundations (MMDR 2015, Section 9B); its amounts are reported from secondary sources and must be checked against the DMF accounts.
Practice questions (15)
Attempt each one before opening the answer. Every explanation names the tempting wrong option as well as the right one, because that is where marks are lost.
Which district holds the Bokaro Steel Plant?
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Answer: B — Bokaro
The Bokaro Steel Plant is in Bokaro district, and the yearbook records its pig iron, crude steel and saleable steel capacities there. Dhanbad is the tempting distractor because Dhanbad holds the Jharia coalfield that feeds the plant.Which mineral is mined and processed by Uranium Corporation of India Ltd at Jaduguda, East Singhbhum?
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Answer: C — Uranium
The yearbook states that uranium ore is mined and processed by Uranium Corporation of India Ltd through underground and opencast mines in East Singhbhum, for use as fuel in the country’s nuclear reactors. Bauxite, mica and kyanite are other minerals of the state, with different districts.According to the Indian Minerals Yearbook 2013, which district is named among the principal mica-producing districts of Jharkhand?
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Answer: D — Koderma
The yearbook names mica in Giridih and Koderma districts. Lohardaga, Latehar and Simdega are named for bauxite or other minerals, not mica, so they are the traps in this list.Which coalfield had the largest total coal resources in Jharkhand as on 1 April 2013, according to the yearbook table?
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Answer: A — Jharia
Jharia held about 19,430 million tonnes against 18,279 for North Karanpura and 16,122 for Rajmahal. North Karanpura is the close competitor, and the answer depends on the date stated, because resource estimates are revised.Match each mineral with a district the yearbook names for it.
P: Copper ore
Q: Kyanite
R: Bauxite
S: Graphite
(i) Palamu
(ii) Saraikela-Kharsawan
(iii) Hazaribagh
(iv) GumlaShow answer
Answer: B — P-iii, Q-ii, R-iv, S-i
Copper ore is named for Hazaribagh and East Singhbhum, kyanite for Saraikela-Kharsawan and West Singhbhum, bauxite for Gumla among others, and graphite for Palamu. Swapping any two pairs gives a wrong key, which is why the matching is safe to test.The Industrial and Investment Promotion Policy 2016 of Jharkhand is linked with which investors’ event held in Ranchi?
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Answer: C — Global Investors Summit 2017, held 16–17 February 2017
The state’s own notice links the 2016 policy to the Global Investors Summit in Ranchi in February 2017. The other events are real summits of other states or the Centre, and the distractors use the year and format of such events to tempt a wrong pairing.In mid-2026 the Jharkhand government released its Industrial Investment Promotion Policy 2026 and its Textile, Apparel and Footwear Policy 2026. In what form were they released?
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Answer: D — As drafts placed on the state’s single-window portal for public comment
The state published both documents as drafts on its single-window portal and invited public comment. A draft is not a notified policy, an industrial policy cannot amend the Constitution, and royalty is fixed by the Union under the MMDR Act. The question is about their form at release; whether final versions were notified later must be checked on the portal.Under the Jharkhand Rehabilitation and Resettlement Policy, 2008, which projects are expressly listed among those covered?
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Answer: A — Iron and steel, aluminium, power generation and cement
Paragraph 3.1(t) lists iron and steel, aluminium, power generation and cement, plus projects the state notifies. Industrial estates are expressly excluded, which is why the option naming industrial estates is a trap. Irrigation and forests are not in the list.Under the 2008 policy, a family that has no land but has lived in a Scheduled Area is treated as affected only if it has been resident for at least how many years before the declaration of the affected area, with the Gram Sabha certifying it?
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Answer: B — Thirty years
In Scheduled Areas the policy requires thirty years of residence (fifteen in non-scheduled areas), certified by the Gram Sabha. Fifteen is the tempting figure because it is the non-scheduled requirement, so the answer depends on reading the area type.Which provision of the 2008 policy shares the profit from land resold for a public purpose with the people from whom the land was acquired?
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Answer: C — Paragraph 6.25 on eighty per cent of net unearned income from transfer
Paragraph 6.25 provides that eighty per cent of net unearned income from transfer of acquired land is shared with those displaced, in proportion to the value at which their land was acquired. Paragraph 7.13.1 is a profit-share for commercial projects, a different mechanism.Consider the following statements about displacement law in Jharkhand.
P: Samatha v State of Andhra Pradesh (1997) held that Scheduled Area land could not be leased to private companies for mining.
Q: Under the 2008 policy, land acquired for a project that is not partly used within five years reverts to the state.
R: The Panchayats (Extension to the Scheduled Areas) Act, 1996 requires Gram Sabha consultation in Scheduled Areas.
S: The 2008 policy sets the annuity at Rs 1,000 a year per acre.
Which statements are correct?Show answer
Answer: D — P, Q and R only
P, Q and R are correct. S is wrong: the annuity is Rs 1,000 a month per acre (Rs 12,000 a year), for thirty years, not a yearly sum of Rs 1,000. Options that include S fail on the amount.Which district pairs correctly with the mineral named for it in the yearbook?
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Answer: A — Garhwa and dolomite
The yearbook names dolomite in Garhwa and Palamu. Kyanite is named for Saraikela-Kharsawan and West Singhbhum, uranium for East Singhbhum, and mica for Giridih and Koderma, so the other three pairs are wrong.Which sequence is in correct chronological order?
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Answer: B — Heavy Engineering Corporation (1958), Bokaro first blast furnace (1972), Jharkhand formed (2000)
Heavy Engineering Corporation was incorporated on 31 December 1958, the Bokaro furnace was blown in on 2 October 1972, and Jharkhand was formed on 15 November 2000. Placing Jharkhand before Bokaro, or any other order, reverses the sequence.A question asks about a district-level mining levy in Jharkhand. Which body is the trust that receives mining royalty for the benefit of mining-affected people, under Section 9B of the MMDR Act as amended in 2015?
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Answer: C — The District Mineral Foundation
Section 9B of the MMDR Act, 2015 provides for the District Mineral Foundation, a non-profit trust funded from royalty for mining-affected districts. The pollution board regulates emissions, BCCL is a coal company, and JRDA runs the Jharia master plan, so each is a plausible but wrong body.In which district is Jamshedpur, the seat of Tata Steel’s works?
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Answer: D — Purbi Singhbhum
Jamshedpur is in East (Purbi) Singhbhum district, which is also the district of the Ghatsila copper smelter. Chaibasa, the district town of West Singhbhum, is a different place, and the two Singhbhum districts are easy to confuse.