In the forested plateau of Santhal Pargana in Jharkhand, a vast and violent transformation is underway. Beneath the hills and agricultural lands of this region lie some of eastern India’s most valuable coal reserves. Over the past two decades, mining of these reserves has begun through the development of three adjacent blocks in the Pachwara coal belt, located in the Rajmahal coalfield and spread across the Pakur–Dumka region. These blocks are called Pachwara North, Pachwara Central, and Pachwara South. But this is not just a story of industrial progress. It is a story of the misuse of public resources for private profit, and of the struggle of Adivasi communities for their right to existence.

On paper, the Government of India allocated these mines to state-owned power companies to supply coal to thermal power plants in West Bengal, Punjab, and Uttar Pradesh. In reality, the coal is mined by a group of private infrastructure companies operating as mine developer and operators (MDOs) — a contractual model where private firms carry out all mining operations on behalf of public sector owners. The result is an extractive system where public coal reserves enrich private capital, while the heavy social and environmental costs are borne almost entirely by the Santhal and Paharia tribes who call this land home.

This report emerges from the heart of a struggle that tests the limits of India’s policies on land acquisition, rehabilitation, and tribal rights. A team from the Communist Party of India (Marxist) and the Adivasi Adhikar Manch has been investigating the issues arising from Pachwara to shape the basis of resistance. What rehabilitation policy applies here? Is it being implemented? Have displaced people actually received tangible benefits such as jobs, land, and compensation? And how can institutions meant to protect environmental and tribal rights be compelled to act?

Geology of Loot

The Pachwara coal blocks lie within the Rajmahal geological basin, a major coal-bearing region. The numbers are staggering. Pachwara North contains about 400 million tonnes of coal. Pachwara Central has an estimated 380 million tonnes, with plans to extract massive quantities through open-cast mining over 44 years. Pachwara South adds another 264-270 million tonnes. Together, they form a mining zone with a capacity exceeding one billion tonnes, designed to supply coal to power plants in northern and eastern India for decades.

The Great Transfer: From Public Sector to Private Contractors

The legal journey of these coal blocks reflects the chaotic liberalisation of India’s mining sector. Initially allocated in the early 2000s to state power companies, their allocation was disrupted by the landmark 2014 Supreme Court judgment that cancelled over 200 coal blocks. Under the Coal Mines (Special Provisions) Act, 2015, they were reallocated to the same state entities: Pachwara North to WBPDCL (West Bengal), Pachwara Central to PSPCL (Punjab), and Pachwara South to a joint venture of Uttar Pradesh and NLC India Limited (NUPPL).

While ownership remained public on paper, operations tell a different story. None of these companies mine coal themselves. Instead, they outsource operations to private firms through coal mining agreements. Under this arrangement, public entities handle pre-mining tasks like land acquisition and clearances, while MDOs build infrastructure and carry out extraction and transport, earning fees per tonne of coal. In essence, the MDO model allows private companies to control nearly all aspects of mining, leaving public sector ownership largely nominal.

Pachwara North is operated by a Hyderabad-based NCC-BGR consortium, awarded a ₹35,000 crore project for 30 years in 2016. Rehabilitation colonies are being constructed by private contractors such as SHAR Projects, which has built housing in Bhisanpur and is constructing another colony in Chilgo. Pachwara Central is run by DBL Pachwara Coal Mines, a joint venture of Dilip Buildcon and VPR Mining Infrastructure. After years of litigation following the cancellation of a previous contract, mining resumed in late 2022. Pachwara South is operated by Ahmedabad-based MIPL-GCL Infracontract.

This is the new face of Indian coal: public ownership, private mining through MDOs, and public risks borne by local communities. PSPCL claims that since operations resumed in December 2022, the mine has supplied 11.5 million tonnes of coal, saving ₹950 crore compared to purchases from Coal India. Yet for displaced families, the reality is unpaid wages and broken promises.

Human Cost: Villages under Threat

Mining expansion has required large-scale land acquisition across villages in Pakur and Dumka districts, much of it belonging to Adivasi communities. Thousands of acres have been acquired, leading to loss of farmland, forests, and displacement of entire villages. Official figures once estimated 250 affected families, but the real number is far higher.

Before formal acquisition, survey teams mapped land, settlements, and infrastructure to identify areas for mining, dumping, and transport corridors. Villagers reported repeated surveys without clear explanation, often conducted without prior consultation with gram sabhas — raising serious concerns about violations of legal safeguards in tribal areas.

Legal Safeguards and Gram Sabha Consent

Santhal Pargana land is protected under tenancy laws like the Santhal Pargana Tenancy Act, 1949, which restricts transfer to non-tribals. The PESA Act, 1996 mandates gram sabha consultation before land acquisition in scheduled areas. The Forest Rights Act, 2006 requires recognition of forest dwellers’ rights before diversion of forest land. Yet villagers report that no meaningful gram sabha consultations took place before surveys and acquisition, effectively bypassing these protections.

Rehabilitation Policy and Broken Promises

Rehabilitation frameworks have evolved, especially after the 2013 Land Acquisition Act, which guarantees compensation, housing, and livelihood support. But ground realities differ sharply.

In Pachwara Central, workers employed under earlier operations were left unpaid for months after mining stopped in 2015. Despite promises of benefits after reallocation, many displaced residents say these have not materialised. Meanwhile, PSPCL celebrates cost savings and production milestones.

Compensation and Discontents

Compensation varies based on land classification (Dhanni-1, 2, 3), with reported rates ranging from ₹8 lakh to ₹16 lakh per acre. However, payments depend heavily on formal land titles. Families without legal records — especially forest-dependent communities — are often excluded.

For Adivasi communities, land is not just property but the basis of a complex livelihood system. One-time compensation replaces a sustainable resource with temporary cash, often leading to long-term insecurity.

Employment: The Central Unfulfilled Demand

Employment is a key demand, yet largely unmet. While policy mandates jobs for displaced families, in practice employment is contractual, insecure, and disconnected from rehabilitation commitments. Even former workers are not guaranteed reemployment under new contractors.

Failed Rehabilitation: New Kathaldih

Visits to resettlement sites like New Kathaldih reveal poor-quality housing and deep mistrust. Some residents refuse to accept permanent ownership, hoping to return to their original lands. Meanwhile, mined land is not restored but turned into dumping grounds.

Environmental Damage and Regulatory Failure

Open-cast mining has caused severe environmental damage: dust pollution, declining crop productivity, health issues, and degraded landscapes. Coal transport by heavy dumpers has worsened pollution and road safety, with frequent accidents reported.

Despite these violations, there is little evidence of effective intervention by regulatory bodies like the NGT or pollution control boards. Complaints often go unresolved.

Key Demands

The report outlines major demands:

·         Full implementation of rehabilitation policies, including for past displacements 

·         Guaranteed permanent employment for affected families 

·         Recognition of land rights for forest-dependent communities 

·         Proper land restoration instead of dumping 

·         Effective pollution control with community monitoring 

·         Mandatory gram sabha consent for all future projects

Conclusion: A Fight for the Future

The Pachwara coal belt reflects a deep crisis in India’s development model. While resources remain publicly owned, control and profits are privatised, and the costs are borne by vulnerable communities. Promises of rehabilitation, environmental protection, and rights remain largely unfulfilled. For the Adivasi communities of Santhal Pargana, this is not just about coal — it is about land, livelihood, dignity, and survival. As excavation deepens and coal trucks roll on, the question remains: will their voices be heard before their land is lost forever?