The Chandrapur-Nagpur-Yavatmal (CNY) region forms the core of Maharashtra’s coal economy, it’s energy backbone and hub, accounting for 100% of the state’s coal production and nearly 50% of its coal-based power capacity. While this legacy has historically fuelled Maharashtra’s industrial growth, the region now faces transition challenges. Ageing coal assets face resource exhaustion challenges, national decarbonisation commitments, and the rising competitiveness of renewables are triggering rapid structural shifts.

By 2035, coal production capacity is projected to decline by approximately 49 million metric tons (MMT), a 50% reduction, and coal-based power capacity by 2.8 gigawatts (GW) a  23% capacity reduction, due to the closure of ageing mines and the retirement of older thermal power units.

These are the findings of a report, titled ‘Regional Just Transition Investment Plan’, prepared by environmental think tank iFOREST and released on Wednesday. The report calls for green transition in the CNY region to unlock in ten years Rs 5.4 lakh crore investment, generate 3.4 lakh jobs and 4% regional GDP growth to secure India’s clean energy future.

“The CNY region is the heartland for 100% of Maharashtra’s coal production and half its coal-based thermal power capacity. However, with ageing power plant units in the horizon and several mines facing resource exhaustion, the region’s coal production capacity is projected to decline by half and coal-based power production capacity by a quarter in the next 10 years. This is a massive opportunity to pivot to green growth,” says the report.

It recommends repurposing of coal mining land to tap into the region’s vast renewable energy potential to transform CNY into Maharashtra’s green energy and green industry hub with highest solar potential of 37 GW. The 10-year blueprint identifies three Economic Development Nodes—Bhadrawati–Wani, Rajura–Chandrapur, and Umrer—which can together repurpose 6,000 hectares of coal mine land into green energy and industrial hubs.

The report has been prepared in collaboration with Department of Environment and Climate Change, government of Maharashtra. It says that the region’s strong industrial base, growing services sector, and robust rail and road connectivity make it well-suited for green transformation. 

The plan identifies key just transition costs amounting to Rs 33,400 crore that must be supported through public investment and contributions from coal mining companies and power utilities. These include expenditures on land reclamation and repurposing, worker skilling, capacity building and institutional strengthening.

Calling for a long term and far reaching shift, Sujata Saunik, chief secretary, government of Maharashtra, in her inaugural video address said that, “Our focus should be to attract investment for development of renewable energy projects and green industrial clusters. We also need to expand electrification from personal vehicles to commercial transportation. This transition will be driven by policy frameworks that unlock green finance and support innovation.” She added that Maharashtra has consistently led from the front in adopting progressive policies for climate resilience and sustainability.

Present at the report release, Praveen Pardeshi, chief economic advisor to the chief minister, and CEO, MITRA, said, “Forty percent of Maharashtra’s energy is used by farmers to pump water for irrigation and moving five lakh farmers to solar pumps is our biggest ongoing success story.” He said that innovative nudge policies and behavior change incentives are needed to support a transition of this scale from traditional energy sources.

Chandra Bhushan, CEO, iFOREST, said that Regional Just Transition Investment Plan is an actionable blueprint to turn the traditional energy cluster of CNY into a green investment destination. By developing strategic economic nodes and unlocking the region’s renewable energy and industrial potential, the plan promotes inclusive green growth in the region.

iFOREST has recommended  development of a dedicated state policy and a robust governance architecture to implement the plan. This includes, a chief minister–led high-level committee, executive bodies, a Just Transition Office, district-level implementation cells and a SPV to mobilise green finance.  It also outlines specific roles of the private sector and financial institutions to mobilise capital, create green value chains, and scale industrial investments.