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Union Cabinet Approves ₹5,940 Crore Jharia Master Plan to Tackle Coalfield Fires and Resettle Families

Targeted fire management with new resettlement infrastructure aims to secure sustainable livelihoods for families displaced by underground coal seam fires

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Overview

  • On June 25 2025, the Union Cabinet chaired by Prime Minister Modi approved the revised plan with a ₹5,940.47 crore budget.
  • The master plan uses a phased strategy to extinguish underground fires and stabilize land subsidence at the highest-risk sites.
  • New resettlement sites will feature roads, power, water supply and essential public facilities including schools and hospitals.
  • A one-time livelihood grant of ₹1 lakh and access to up to ₹3 lakh in institutional credit will support both legal and non-legal title holder families.
  • A dedicated Alternative Livelihoods Rehabilitation Fund and targeted skill development will aim to foster sustainable income for displaced households.