India’s First Regional Energy Transition Plan Focuses on Vidarbha’s Coal Belt

thenewsdirt
Aug 13
7 min read

Vidarbha region, known for its coal-dependent economy, an ambitious new plan is charting a greener course for the future.

This week, the state government and a Delhi-based environmental think tank unveiled India’s first regional energy transition blueprint aimed at transforming Vidarbha’s coal belt into a clean energy hub.

The Chandrapur–Nagpur–Yavatmal (CNY) area, often called Maharashtra’s energy backbone for producing all of the state’s coal and hosting half its coal-fired power capacity, has long powered industries and cities. Now, with coal reserves declining and climate pressures rising, officials are banking on renewable energy and new industries to drive the region’s next chapter.

The plan, released on 25 June 2025, outlines a 10-year “just transition” roadmap to shift the CNY coal heartland onto a sustainable path. It comes as ageing mines and power plants in the area face resource exhaustion, threatening to cut local coal output by roughly 50% and electricity generation by 25% within a decade.

Rather than waiting for a crisis, authorities see this as an opportunity. “A green transition is not the only thing we need to do in terms of phasing out coal; it is also about bringing new avenues for green growth and ensuring that the shift is far-reaching and fair,” said Maharashtra Chief Secretary Sujata Saunik, stressing that the change must create fresh economic opportunities for the region.

She noted that the focus should be on attracting investment in renewable energy projects and green industries while expanding electrification of transport, steps the state views as crucial for both the economy and the environment.

Coal Hub at a Crossroads

Chandrapur, Nagpur, and Yavatmal districts form the core of Vidarbha’s coal country, supplying all of Maharashtra’s domestic coal and hosting major thermal power stations.

This has made the area an industrial nerve-centre, but also left it economically reliant on a fossil fuel now in decline.

According to the new transition report by the International Forum for Environment, Sustainability & Technology (iFOREST), around six lakh workers in the region depend on coal mining and related activities for their livelihood.

With several mines nearing the end of their life and future coal demand uncertain, the government faces a balancing act: support those workers and local economies while cutting carbon emissions.

The transition plan highlights the urgent need to diversify the area’s economy before coal revenues dry up. “The CNY region is the state’s energy backbone. However, with ageing power plant units and mines facing resource exhaustion, the region’s coal production is projected to decline by half in the next 10 years,” the iFOREST report warns.

As coal output falls, thousands of jobs and state revenues are at stake. The plan calls for proactive measures to retrain the workforce, reclaim exhausted mine lands, and attract alternative industries. It emphasises that repurposing coal land and tapping the area’s vast renewable potential can “transform [the region] into Maharashtra’s green energy and green industry hub”. The goal is to shift from an extraction-based economy to a more diverse and sustainable one, without leaving communities behind.

Local officials appear receptive. Saunik has acknowledged that the transition must be “fair” to those currently in coal-dependent jobs.

The state has signalled it will consider iFOREST’s blueprint as a basis for policy. At the plan’s launch event in Mumbai, she praised the initiative and indicated Maharashtra would study the recommendations closely. The sentiment reflects a growing recognition that this coal belt stands at a turning point, and that doing nothing is no longer an option.

Blueprint for a Green Hub

The Regional Just Transition Investment Plan released by iFOREST, in partnership with Maharashtra’s Environment and Climate Change Department, is the first of its kind in India.

It lays out a detailed roadmap from 2025 to 2035 to reinvent the Chandrapur–Nagpur–Yavatmal coal belt as a clean energy and industrial zone.

Central to the plan is the creation of three new “economic development nodes” on former coal mining lands. These zones at Bhadrawati–Wani, Rajura–Chandrapur, and Umrer would together convert about 6,000 hectares of depleted mine areas into sites for renewable power projects and green industries.

Each node has a specific focus based on its location and strengths. The Bhadrawati–Wani cluster in the western part of Vidarbha is earmarked for green hydrogen fuel and chemical manufacturing, leveraging existing industrial infrastructure and nearby water sources. This hub alone could attract an estimated ₹2.63 lakh crore of investment. The Rajura–Chandrapur node, in the heart of the coal belt, is proposed as a centre for electric vehicle and battery production, with about ₹2 lakh crore in new investments projected.

Meanwhile, the Umrer node near Nagpur would target high-tech industries like semiconductor fabrication and advanced electronics manufacturing, requiring a more modest ₹16,600 crore investment but potentially seeding a new tech ecosystem in the region.

Underlying these plans is the area’s enormous renewable energy potential, especially solar power. Studies have identified around 37 gigawatts of solar generation capacity in the CNY region, thanks to its vast tracts of land and high sunlight availability.

The transition blueprint envisions large solar parks and renewable energy projects taking root on former mining sites. This clean energy would not only replace coal-fired electricity but also power the proposed new industries (like green hydrogen electrolysers or EV factories) with carbon-free electricity.

The idea is to create a virtuous cycle of cheap solar power draws investors in green businesses, and those new industries, in turn, provide jobs and economic growth to offset the shrinking coal sector.

Crucially, the plan is backed by data-driven analysis. The iFOREST team conducted geospatial mapping of mine sites, an economic “SWOC” assessment (Strengths, Weaknesses, Opportunities, Challenges) for the region, and modelling of how various sectors could grow.

This helped pinpoint which locations are best suited for particular industries. Chandrapur’s proximity to existing power plants and rail lines, for instance, could give an advantage for battery and EV manufacturing. Nagpur’s status as a logistics hub and its educated workforce might help the Umrer area nurture technology firms.

By tailoring solutions to local conditions, the roadmap provides a level of detail rarely seen in broad climate policies.

Investment, Jobs and a ‘Just’ Transition

If executed, the transition plan could unlock an economic windfall over the next decade. The report projects that shifting the CNY belt to a green economy can attract up to ₹5.4 lakh crore (₹5.4 trillion) in new investments by 2035.

This influx of capital in renewable power, factories, and supporting infrastructure would boost regional GDP by an estimated 4%. Importantly, it could create about 3.4 lakh new jobs, more than enough to compensate for losses in the coal sector.

These jobs would range from construction of solar plants and manufacturing work in new factories to roles in maintenance, research and development, and skilled trades connected to clean energy.

The environmental payoff would be significant as well. Replacing coal-based energy with renewables and restoring forests on mine lands could cut carbon emissions by roughly 25 million tonnes per year, according to iFOREST.

That reduction is equivalent to removing 12.5 million gasoline cars, about one-third of all vehicles in Maharashtra, from the roads. Such a drastic cut in pollution would improve air quality and help India inch closer to its climate targets. “Saving 25 million tonnes of carbon emissions would have a long-lasting effect as it would mean removing 1.25 crore cars from roads permanently,” noted Chandra Bhushan, CEO of iFOREST. It underscores how local actions in this region can contribute to global efforts against climate change.

However, making this transition “just”, that is, fair and inclusive, will require upfront investment and careful planning.

The iFOREST report identifies around ₹33,000–33,400 crore (approximately $4 billion) in funding needed purely for transition efforts beyond the new industries.

This includes rehabilitating and reforesting old mine sites, training coal workers for new jobs, supporting affected communities, and strengthening institutions to manage the change. The plan suggests that coal companies and power utilities contribute to a fund for land reclamation and worker reskilling, alongside government allocations. “None of India’s net zero targets can be met without Maharashtra playing a big role in this transition,” iFOREST’s Chandra Bhushan pointed out, calling the plan an “actionable blueprint” for inclusive green growth.

He advocates setting up a dedicated state-level Just Transition authority, led by the Chief Minister and including industry representatives, to steer implementation on the ground.

Maharashtra’s government has indicated strong support in principle, aligning with its broader climate policies. “This transition will be driven by policy frameworks that unlock green finance and support innovation,” Chief Secretary Saunik said, highlighting that the state has already been a frontrunner in climate initiatives. One clear example is the push for solar-powered agriculture. “Forty percent of Maharashtra’s energy is used by farmers to pump water for irrigation.

Moving them to solar pumps is our biggest ongoing success story,” noted Praveen Pardeshi, the Chief Minister’s economic advisor, referencing a program to deploy solar irrigation pumps across rural areas.

By reducing farmers’ reliance on grid electricity (often generated from coal), solar pumps cut costs and emissions which is exactly the kind of win-win the transition plan aims to expand. Pardeshi emphasised the need for “innovative nudge policies and behaviour change incentives” to replicate such successes on a larger scale and wean the region off traditional energy sources.

Whether the region’s ambitious green transformation fully materialises will depend on political will, investment flows, and how well the shift is managed on the ground.

The blueprint provides a vision, but implementation will be the true test. For now, the CNY plan stands as a pioneering attempt to balance economic development with climate action at a regional level in India. It may serve as a model for other coal-dependent areas, from Jharkhand’s mining towns to Andhra Pradesh’s power-plant clusters, seeking to navigate the post-coal era.

This experiment in energy transition is being watched closely as a bellwether for India’s coal heartlands. The region has been promised a future where smokestacks give way to solar farms and tech parks, without sacrificing jobs or growth.

If the state government moves from planning to execution, the Chandrapur–Nagpur–Yavatmal belt could become a showcase for how to turn a carbon-intensive legacy into a sustainable opportunity.

In the coming years, the success of this first regional transition plan could inspire similar green roadmaps across the country – illuminating a path for India’s energy evolution that leaves no one behind.