Resource Curse Or Federal Imbalance? Coal Mining’s Impact On India’s Resource-Rich States

Trishla Dubey, Maharashtra National Law University, Nagpur

ABSTRACT

This paper explores the intricate relationship between coal mining, federalism, and economic disparities in India, focusing on the impact of coal mining on the country’s resource-rich states. Coal, a critical resource in India’s energy mix and economic development, is primarily extracted from states that are economically disadvantaged and often lack the infrastructure and governance capacity to manage the environmental and social costs of mining. This paper investigates whether the adverse effects observed in these states are a manifestation of the “resource curse” whereby resource-rich regions experience slower economic growth and development or a result of federal imbalances, where the benefits of coal mining are disproportionately distributed in favour of wealthier states or the central government. By analysing the allocation of mining royalties, the distribution of environmental and social impacts, and the governance frameworks under India’s federal structure, the paper highlights how coal mining has exacerbated regional inequalities. The research underscores the need for policy reforms that address these imbalances, ensuring that the benefits of coal mining contribute to sustainable development and equitable growth across all states. The findings contribute to the broader discourse on resource governance in federal systems, offering insights that could inform more equitable and sustainable mining practices in India and similar contexts globally.

Keywords: coal mining, Indian constitution, federalism, resource curse, environmental degradation