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Report Just Energy Transition Odisha Unlocked

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sonia raj gill
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JUST TRANSITION

IN ODISHA FOR
GREEN GROWTH &
GREEN JOBS

i
JUST TRANSITION
IN ODISHA FOR
GREEN GROWTH &
GREEN JOBS
Research Director: Chandra Bhushan
Research and writing: Srestha Banerjee and Dhwani Shah
Research support: Harshil Sharma
Design and Layout: Raj Kumar Singh

Contributions:
Chandra Bhushan: Conceptualisation, supervision, review, and finalisation
Srestha Banerjee: Project administration; lead writer on coal mining, steel, aluminium, cement, and
stakeholder summary sections; co-author of electricity section; editorial review across chapters
Dhwani Shah: Data curation and analysis; lead writer on GHG profile, building and construction
sections; co-author of electricity section.
Harshil Sharma: Data curation, analysis and co-author of jobs and workforce section.

© 2024 International Forum for Environment, Sustainability and Technology


November 2024
Material from this publication can be used but with acknowledgment.

Citation: Chandra Bhushan, Srestha Banerjee and Dhwani Shah. (2024). Just Transition in Odisha for
Green Growth and Green Jobs. International Forum for Environment, Sustainability and Technology
(iFOREST). New Delhi, India.
Contents
List of Tables ...................................................................................................................... vi
List of Figures ................................................................................................................... vii
List of Maps ...................................................................................................................... viii
List of Abbreviations ........................................................................................................... ix
Summary for Stakeholders ................................................................................................. 11
Introduction ...................................................................................................................... 25

Section I: Fossil Fuel Sectors ............................................................................................ 26


Chapter 1: Coal Mining ................................................................................................... 28
Chapter 2: Oil and Gas ................................................................................................... 44

Section II: Electricity Sector ............................................................................................. 50


Chapter 3: Coal-based Thermal Power ........................................................................... 52

Section III: Factories ......................................................................................................... 66


Chapter 4: Iron and Steel .............................................................................................. 70
Chapter 5: Aluminium ................................................................................................... 76
Chapter 6: Cement ........................................................................................................ 80

Section IV: Building and Construction ............................................................................... 84


Chapter 7: Construction Sector ..................................................................................... 86

Section V: Jobs and Workforce ......................................................................................... 92


Chapter 8: Green Jobs and Workforce Development ....................................................... 94

Section VI: Way Ahead ..................................................................................................... 102


Chapter 9: Agenda for Action ....................................................................................... 104

Annexures ...................................................................................................................... 108


References ...................................................................................................................... 110

v
List of Tables
Chapter 1: Coal Mining
Table 1.1: Coal resources in Odisha ..................................................................................... 28
Table 1.2: Operational coal mines ....................................................................................... 29
Table 1.3: Closed coal mines............................................................................................... 30
Table 1.4: Captive coal mines.............................................................................................. 30
Table 1.5: Overall coal production capacity by 2025-26......................................................... 31
Table 1.6: Allocated coal blocks........................................................................................... 31
Table 1.7: Land available with operational and closed coal mines......................................... 32
Table 1.8: Block-wise mine land availability ......................................................................... 33
Table 1.9: Workforce of MCL mines ..................................................................................... 34
Table 1.10: Estimated formal workers in coal mines............................................................. 35
Table 1.11: Operational coal washeries................................................................................. 35
Table 1.12: Unprofitable mines............................................................................................ 36
Table 1.13: Taxes and revenue contribution to central and state government........................ 36
Table 1.14: Phase-down schedule of operational mines ...................................................... 38
Table 1.15: Sector-wise coal dispatch.................................................................................. 39
Table 1.16: Mines that can be considered for repurposing by 2030........................................ 40
Table 1.17: Estimated funds from DMF and coal cess............................................................ 42
Table 1.18: Status of DMF funds accrual and utilisation in coal districts................................ 43

Chapter 2: Oil and Gas


Table 2.1: Processing at Paradip refinery............................................................................ 45
Table 2.2: Year-wise crude oil processed by Paradip........................................................... 45
Table 2.3: Annual industry sales of petroleum products in Odisha........................................ 45
Table 2.4: Employment in oil refinery.................................................................................. 46
Table 2.5: PNG connections............................................................................................... 48

Chapter 3: Electricity
Table 3.1: Installed capacity of captive power plants........................................................... 54
Table 3.2: Industry-wise captive capacity........................................................................... 54
Table 3.3: Operational utility-scale TPPs............................................................................. 55
Table 3.4: Under construction and likely to be commissioned TPPs .................................... 55
Table 3.5: Overall coal-based capacity by 2027-28.............................................................. 56
Table 3.6: Age assessment of utility-scale TPPs ................................................................ 56
Table 3.7: Age assessment of selected CPPs....................................................................... 57
Table 3.8: Land availability with utility-scale TPPs............................................................... 58
Table 3.9: Land available with CPPs.................................................................................... 58
Table 3.10: Total employment in TPPs................................................................................. 59
Table 3.11: District-wise employment in coal-based power plants........................................ 59
Table 3.12: Fly ash generation and utilisation...................................................................... 60
Table 3.13: Plant-wise PLF and FGD installation status......................................................... 61
Table 3.14: Installed RE capacity......................................................................................... 63
Table 3.15: RE potential...................................................................................................... 64

vi
Chapter 4: Iron and Steel
Table 4.1: District-wise sponge iron-making units................................................................ 71
Table 4.2: Iron ore mines.................................................................................................... 72
Table 4.3: District-wise workforce in crude steel-making units............................................ 72

Chapter 5: Aluminium
Table 5.1: Bauxite mines...................................................................................................... 77
Table 5.2: Employment in aluminium smelters.................................................................... 78

Chapter 6: Cement
Table 6.1: Number and capacity of cement plants................................................................ 80
Table 6.2: Limestone mines................................................................................................. 81
Table 6.3: Employment in cement plants.............................................................................. 81

Chapter 7: Construction Sector


Table 7.1: Population and urban share in India and Odisha.................................................... 87
Table 7.2: List of various green-certified buildings.............................................................. 87
Table 7.3: Districts with over one lakh registered construction workers............................... 88

Chapter 8: Green Jobs and Workforce Development


Table 8.1: District-wise formal workers in fossil fuel industries in key districts..................... 94
Table 8.2: Potential RE jobs................................................................................................ 96
Table 8.3: Strengths and gaps of skilling programmes........................................................ 100

List of Figures
Chapter 1: Coal Mining
Figure 1.1: Year-wise coal production in Odisha................................................................... 28

Chapter 2: Oil and Gas


Figure 2.1: Trend in increase in retail outlets....................................................................... 46
Figure 2.2: Trend in increase in LPG distributors................................................................. 48

Chapter 3: Electricity
Figure 3.1: Fuel types in the electricity sector..................................................................... 52
Figure 3.2: Projected electricity consumption.................................................................... 52
Figure 3.3: Trend in utility demand...................................................................................... 53
Figure 3.4: Per capita electricity consumption.................................................................... 53
Figure 3.5: GHG emissions from TPPs ................................................................................ 62

Chapter 4: Iron and Steel


Figure 4.1: Emissions from the steel industry...................................................................... 73

vii
List of Maps
Chapter 1: Coal Mining
Map 1.1: Spatial distribution of operational coal mines......................................................... 32

Chapter 3: Electricity
Map 3.1: District-wise distribution of coal-based power plants............................................ 57

Chapter 4: Iron and Steel


Map 4.1: Distribution of crude steel-producing plants........................................................... 71

Chapter 5: Aluminium
Map 5.1: Capacity and distribution of alumina refineries...................................................... 76
Map 5.2: Capacity and distribution of aluminium smelters ................................................... 77

Chapter 6: Cement
Map 6.1: District-wise distribution of cement plants............................................................ 80

viii
List of Abbreviations
BAT Best Available Technologies
BSES Battery Energy Storage System
CAGR Compound Annual Growth Rate
CCUS Carbon Capture, Utilisation and Storage
CEA Central Electricity Authority
CNG Compressed Natural Gas
CPP Captive Power Plant
CGST Central Goods and Services Tax
CIL Coal India Limited
CSR Corporate Social Responsibility
DDUGKY Deen Dayal Upadhyaya Grameen Kaushalya Yojana
DMF District Mineral Fund
DRI Direct Reduced Iron
EC Environment Clearence
ECBC Energy Conservation Building Code
EV Electric Vehicle
FGD Flue Gas Desulfurization
FTE Full-time Employment
FY Financial Year
GHG Greenhouse Gas
GoI Government of India
GRIDCO Grid Corporation of Odisha
GRIHA Green Rating for Integrated Habitat Assessment
GSDP Gross State Domestic Product
GSVA Gross State Value Added
GW Giga Watt
IBPIL Ind-Barath Power Infra Limited
IGBC Indian Green Building Council
ILO International Labour Organization
IPR Industrial Policy Resolution
IOCL Indian Oil Corporation Limited
JSL Jindal Stainless Limited
JSPL Jindal Steel and Power Limited
LEED Leadership in Energy and Environmental Design
LFPR Labour Force Participation Rate
LPG Liquefied Petroleum Gas
MCL Mahanadi Coalfields Limited
MDO Mine Development Operator
MOEFCC Ministry of Environment, Forest and Climate Change
MMT Million metric tonnes
MMTPA Million metric tonnes per annum
MNRE Ministry of New and Renewable Energy

ix
MSME Micro, Small and Medium Enterprises
MW Mega Watt
NALCO National Aluminium Company Limited
NAPS National Apprenticeship Promotion Scheme
NSQF National Skill Qualification Framework
NUA Nutana Unnata Abhilasha
OC Opencast
OMCL Odisha Mining Corporation Limited
OPGCL Odisha Power Generation Corporation Limited
OREP Odisha Renewable Energy Policy
OSDA Odisha Skill Development Authority
PAT Perform, Achieve and Trade
PMKVY Pradhan Mantri Kaushal Vikas Yojana
PNG Piped Natural Gas
PLF Plant Load Factor
PLFS Periodic Labour Force Survey
PLTP Placement-linked Training Programme
PSU Public Sector Undertaking
PV Photovoltaic
R&D Research and Development
RE Renewable Energy
RES Renewable Energy Sources
RPO Renewable Purchase Obligation
SAIL Steel Authority of India Limited
SCCL Singareni Collieries Company Limited
SDTE Skill Development and Technical Education
SGST State Goods and Services Tax
SPCB State Pollution Control Board
STPS Super Thermal Power Station
TPP Thermal Power Plant
TPS Thermal Power Station
UG Underground

x
Summary for Stakeholders
Odisha is one of India’s most resource-rich states, being endowed with abundant coal, iron ore, and other
mineral resources. The state is home to major industries such as steel, aluminium, cement, among others. In
2023-24, industrial sector contributed about 43.3% to the Gross State Value Added (GSVA), much higher than
the national average of 27.6%. The state envisions becoming the ‘industrial hub of Eastern India’ and the trade
and commerce gateway to South and East Asia.
Considering the trajectory of industrial growth, Odisha is a key state in realising India’s net zero goals and
steering the course of an accelerated and just energy transition. The state’s greenhouse gas (GHG) emissions
have increased at a compound annual growth rate (CAGR) of slightly over 5.6% over the last decade. As per
2022-2023 estimates, the total GHG emission is 305.2 million metric tonnes of CO2 equivalent (MMT CO2e), which
is about 9.7% of India’s total.
Depending on the growth rate of the Gross State Domestic Product (GSDP), emission intensity, and green economy
policies, Odisha’s total GHG emissions are projected to range between 493-782 MMT CO2e by 2035-36. In a business
as usual scenario, with trends similar to the past decade, emissions could reach 665 MMT CO2e—more than double
the current levels. Under a high-growth scenario, with 8% annual GSDP growth and unchanged emission intensity
reductions, emissions may rise to 782 MMT CO2e. However, in an NDC-aligned scenario, with 8% GSDP growth and a
45% reduction in emission intensity from 2005 levels, emissions would be 493 MMT CO2e.
With large-scale industrial expansion planned—especially in the coal, iron and steel, and construction sectors—
Odisha requires a comprehensive, cross-sectoral strategy to reduce the emission intensity of its economy and meet
the emission intensity and renewable energy (RE) targets set by India. This approach must also focus on creating
opportunities for green jobs, promoting sustainable economic growth, and ensuring an inclusive and just transition.

Figure 1: GHG emissions in Odisha


350
300
250
MMT CO2e

200
150
100
50
0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Source: iFOREST analysis

Figure 2: Projected GHG emissions under different scenarios


800
Bussiness-as-Usual scenario
700
High Growth scenario
600 NDC scenario
500
MMT CO2e

400
300
200
100
0
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
2025-26
2026-27
2027-28
2028-29
2029-30
2030-31
2031-32
2032-33
2033-34
2034-35
2035-36

Source: iFOREST analysis

11
A. Just Transition Landscape: Sectors, Geographies and
Dependency
1. Coal mining
The coal mining sector faces the risk of stranded assets due to climate goals and increasing competition from
the renewable energy sector. Over the next 10 years, the state is likely to close six coal mines, highlighting the necessity
for a just transition strategy that safeguards economic development and employment in the impacted regions.

Odisha is India’s largest coal-producing state, accounting for about 24% of the country’s coal
About
production. The state has a coal production capacity of about 353 million metric tonnes per
24% of
India’s coal annum (MMTPA) and produced over 237 MMT of coal in 2023-24, combining commercial and
production captive mines. The Public Sector Undertaking (PSU) Mahanadi Coalfields Limited (MCL), a
comes from subsidiary of Coal India Limited (CIL), alone produced 206 MMT of coal.
Odisha
The sector supports over 40,500 formal jobs and at least 1.6 times informal workers. Out of
the total formal workers, 35,440 are with MCL. About 57% of the workers are engaged in mining
activities in Talcher block of Angul district.

Table 1: Status of operational mines


Mine type No. of mines Production capacity (MMTPA) Formal workforce
Opencast* 22 350.55 38,000
Underground 4 2.42 2,515
Total 26 352.97 40,515
Source: CIL, August, 2024, and latest environmental clearance letters of mines operational in the state. *Includes 15 commercial and
seven captive mines.

Transition hotspots, challenges, and opportunities


Hotspots: Commercial and captive coal mines in Odisha, are spread over four districts. These include Angul,
Sundargarh, Jharsuguda, and Sambalpur. Over 46% of the mines (12 mines) are in Angul district with a cumulative
production capacity of 145 MMTPA.
Overall, Talcher block of Angul is the most important transition hotspot with nine operational mines with
over 121 MMTPA production capacity. The block also has three closed mines. Apart from Talcher, the other
important region is the Jharsuguda and Lakhanpur blocks of the Jharsuguda district. There are five operational
mines in these two adjoining blocks with a cumulative production capacity of about 62 MMTPA. Additionally, in
Jharsuguda block, there are three closed mines.
By 2030, six mines—four underground (UG) and two opencast (OC)—can be closed in the state. These mines
are concentrated in Talcher and Jharsuguda blocks. Except for the two OC mines, all are low-producing, and out
of the four UG mines, three are unprofitable. Additionally, by 2040, Talcher block will experience the transition
of key mines, such as Lingaraj, Ananta, and Jagannath, due to exhaustion of resources. Overall, a total of six
mines with about 80 MMT capacity will exhaust resources.
Challenges: A major concern for Odisha is the risk of stranded assets in the coal sector due to
Coal planned expansion and underutilisation of existing capacity. While the state has a coal production
mining sector capacity of 352 MMT, the current output is only 235 MMT, meaning mines are operating at just
should mitigate
stranded asset
67% capacity. With the potential to increase production by over 100 MMT from existing mines,
risks by optimising opening new coal blocks is inefficient, and may have no takers in the future.
production from Besides, nearly 99% of Odisha’s coal produced by MCL is dispatched for power
existing mines
generation. As India advances towards renewable energy (RE) goals, coal demand is
expected to peak by the mid-2030s, making new mines economically unviable.
Opportunities: In the next decade, the coal mining sector should focus on improving operational efficiency and
optimising resource extraction from the operational mines. All the new mines being planned for the state must

12
go through an assessment of the prospects of demand considering the coal peak to mitigate
the risk of stranded assets. Optimising the output from existing mines will also ensure more 11,000
hectares of
sustainable resource management. coal mining land
Planning economic diversification of coal districts will also be important to start can be planned for
creating alternative livelihood opportunities to ensure a smooth transition of the local repurposing by
2030
communities and prevent any socio-economic disruptions. Repurposing of land available
with coal mines provides a crucial opportunity for this.
In the immediate future, the opportunity lies with repurposing the land available with closed mines, and those
that are going to exhaust their extractable resources or are economically unviable. Considering this, collectively,
over 11,000 hectares (ha) of land can be planned for repurposing by 2030. This land is primarily in Talcher and
Jharsuguda blocks.
Overall, in the coming decades, a planned reclamation and repurposing of mining land through a collaborative
approach between the mining company(ies), the state government, and the local community will be crucial for
optimising productive economic use of this valuable asset and ensuring economic continuity in mining districts
and blocks.

Table 2: Land available with coal mines


Mine type Land available (ha)
Commercial operational mines* 24,895.5
Captive operational mines 6,830
Closed mines 4,734
Total 36,459.5
Source: iFOREST analysis based on information obtained from MCL, 2024, and environmental clearance letters of mines; * Includes one
mine to start operation soon

2. Coal-based power
The captive power plants associated with various industrial sectors should accelerate the integration of renewables
to align with the Renewable Purchase Obligation targets and support overall industrial decarbonisation measures.

Odisha has one of the largest captive power plant (CPP) capacities in India, which is 16% of the country’s total,
given its large-scale industrial operations. Of the total 12.5 gigawatts (GW) of captive power capacity, 93% (11.7
GW) is coal-based. Overall, the total capacity of coal-based power in the state is 21 GW.
The sector is a key contributor to the state’s GHG emissions. As per estimates for 2022-23, the coal-based
thermal power plants (TPPs) contribute to about 49% (149.8 MMT CO2e) of the state’s total GHG emissions. The
emissions from TPPs have grown at a CAGR of 6.3% over the last decade.
Overall, the sector formally employs nearly 32,300 people, out of which about 59% are with the CPPs. The
informal jobs are likely to be much higher.

Table 3: Coal-based thermal power plants


Type No. of plants Capacity (GW) Formal workforce
Utility 7 9.4 13,247
Non-utility (captive) 79 11.6 19,046
Total 86 21 32,293
Source: Capacity data based on the report of Central Electricity Authority, 2024, and Odisha Renewable Energy Development Agency,
2024. Worker numbers have been estimated based on company data, manpower requirement norms of Central Electricity Authority,
2024, and district-wise CPP data as obtained from GRIDCO, 2024

The coal-based power fleet in Odisha is relatively young considering both utility-scale and captive plants. Of
utility-scale plants, only about 1.4 GW will reach 35 years of age in the next six to seven years. Considering CPPs,
the assessment for plants with 100 MW and above capacity shows that these units started operating during the
first decade of this century.

13
Transition hotspots, challenges, and opportunities
Hotspots: About 88% of the coal-based power capacity (combining utility-scale and captive plants) is
concentrated in five districts- Angul, Dhenkanal, Jharsuguda, Sundargarh, and Sambalpur, which are the hubs
of coal mining and industrial operations. Among these, Angul has the maximum installed capacity, about 6.7 GW,
considering the operation of the NTPC plant, and three CPPs. Jharsuguda, which is a close second with about
5.7 GW installed capacity, has 11 plants (eight captive and three utility-scale).
Challenges: Odisha has a substantial number of CPPs, primarily fueled by coal. These plants help industries
meet their electricity demands while reducing reliance on the state’s grid. However, the heavy dependence on
coal for power generation in these plants contributes significantly to GHG emissions. With the state’s ambition
and potential of industrial growth, the number of CPPs will also increase. Therefore, it is important to plan a
transition of the CPPs to green energy sources.
Opportunities: There are two crucial opportunities for transitioning the state’s coal-based
power sector - green transition of the CPPs, and repurposing of the existing old thermal
1.4 GW of power plants (TPPs) and energy assets.
TPP capacity
combining four Considering that greening the power sector and industrial decarbonisation will be
units can be planned crucial for Odisha’s green transition, integrating RE sources in CPPs will be necessary.
for repurposing by These units must accelerate RE integration to align with the Renewable Purchase
2035
Obligation (RPO) targets (43.33% overall RPO target by 2030) to support decarbonisation
efforts. Further, the target of 11 GW of RE capacity by 2030, set by the State Government
provides the necessary impetus for this.
The Odisha Renewable Energy Policy (2022) already offers several non-fiscal and fiscal incentives to support
RE adoption by CPPs. These include fast-track approvals, specific exemptions on Electricity Duty, State
Transmission Utility charges, and wheeling charges, among others.
Concerning the repurposing of energy assets, about 1.4 GW capacity combining four TPP units can be planned
for repurposing by 2035. These include two units (200*2=400 MW) of the IB Valley Thermal Power Station
(TPS) and two units (500*2=1,000 MW) of Talcher power station.

Table 4: Repurposing of TPP units by 2035


Plant name Company Location Units that can Capacity Year by which
be retired and reaching 35
repurposed years age
IB Valley TPS Odisha Power Generation Jharsuguda 1 200 2029
Corporation Ltd. (OPGCL) 2 200 2030
Talcher STPS NTPC Ltd. Angul 1 500 2030
2 500 2031
Source: iFOREST analysis based on data of Central Electricity Authority, 2024, and environmental clearance letters of plants

Overall, repurposing the land available with TPPs is an important opportunity for industries to develop green
energy infrastructure. Nearly 4,200 ha of land is available with the utility-scale plants. Besides, an estimated 5,904
ha of land is available with the CPPs operating in various districts. About 69% of the CPP land is concentrated in
just three districts, Angul, Jharsuguda, and Sambalpur, the biggest industrial districts of the state.

3. Industry
With the ambition to make Odisha the industrial and manufacturing hub of Eastern India, and with more than 3.2
lakh formal employment in various factories, a just transition of industry will be a central agenda for greening
Odisha’s economy and boosting green job opportunities.

Odisha has 3,207 factories of which 2,697 were operational during the reference year 2021-22. The industries in
the state with which these factories are associated have been classified into ‘high, moderate, and low impact’
categories for energy transition, considering their reliance on fossil fuels and the intensity of their energy use.

14
IMPACT CATEGORY OF FACTORIES
Factories are defined as “any premises including the precincts thereof— (i) whereon ten or more workers are
working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing
process is being carried on with the aid of power, or is ordinarily so carried on, or (ii) whereon twenty or more
workers are working, or were working on any day of the preceding twelve months, and in any part of which
a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on”. (The
Factories Act, 1948).
The following are the various sectors that will fall under the high, moderate, and low-impact segments
in the event of energy transition.
High impact: Sectors including iron and steel, coke ovens, refined petroleum products, electric motors,
generators, batteries, cement, bricks, refractories, automobile and automobile components, basic
chemicals, fertilizer, and nitrogen compounds, among others, will be highly impacted.
Moderate impact: Sectors including fabricated metals, pulp and paper, and pharmaceuticals, among
others, will be moderately impacted due to the direct use of fossil fuels like coal and natural gas for process
heat and electricity.
Low impact: Sectors including food processing, wood-processing and product industries, tobacco,
computer and electronics, consumer goods, types of machinery, etc., will be less impacted due to energy
transition.

High impact
Over 40% of the factories in Odisha will be highly impacted by the energy transition.
These factories are highly significant for the economy for the following reasons: 40% of the
• They account for over 90% of the total economic output and over 92% of the Gross factories that will
Value Added (GVA) from all factories. be highly impacted by
the energy transition
• They have over 78% of total factory employment and engage 80% of all factory engage 80% of all
workers. factory workers
• This segment also has a very high share of women workers, which is about 71% of all
women workers (total women workers in factories is 16,403) engaged in various factories.
• These are highly energy-intensive and are responsible for around 96% of the total energy consumption from
industries.

Moderate impact
Approximately 36% of the state’s total factories will be moderately impacted by the energy transition. These
factories account for:
• About 4.7% of the total economic output and 5.4% of the total GVA.
• Over 11.5% of total factory employment.
• About 3.4% of the total energy used by all factories and exhibit moderate energy intensity.

Low impact
Approximately 24% of the factories will face low impact from the energy transition as these have very low
energy consumption and are responsible for about 0.8% of the total energy usage. These factories account for:
• About 4.4% of the total economic output and 2.3% of the total GVA.
• Over 10% of total factory employment.

15
Table 5: Characteristics of industries likely to be impacted by the energy transition
Characteristics All High impact Moderate impact Low impact
factories
Value Share of Value Share of Value Share of
total (%) total (%) total (%)
1. Number of factories 3,207 1,297 40.4 1,149 35.8 761 23.7
a. Number of factories in 2,697 1,057 39.2 941 34.9 699 25.9
operation
2. Total output (I Lakh) 4,68,79,707 4,26,12,003 90.9 22,03,707 4.7 20,63,997 4.4
3. Gross Value Added (GVA) (I Lakh) 1,00,09,291 92,36,293 92.3 5,41,582 5.4 2,31,416 2.3
4. Number of persons engaged 3,20,649 2,51,105 78.3 36,882 11.5 32,662 10.2
5. Total number of workers 2,70,401 2,16,370 80 28,797 10.7 25,234 9.3
a. Percentage of workers 58.4 61.7 47.8 42.2
employed through contractors (%)
b. Number of directly employed 16,403 11,701 71.3 589 3.6 4,113 25.1
women workers
6. Total energy use (as per cost 35,05,724 33,55,888 95.7 1,20,600 3.4 29,236 0.8
in I Lakh)
Source: iFOREST analysis based on Annual Survey of Industries 2021-22, Government of India

IRON AND STEEL SECTOR


With about half of India’s iron ore resources, Odisha is India’s largest steel producer with a crude steel production
capacity of about 33.5 MMTPA (as per the latest estimates). This is about 21% of the country’s total. The state
aims to massively expand the production capacity to 100 MMTPA by 2030 which will account for one-third of the
crude steel production that the Government of India targets by 2030-31.
This will also mean a massive expansion of iron ore production in the state, with the state already having a
production capacity of about 297 MMTPA and producing 169 MMT annually.
The sector is one of the largest contributors to the state’s GHG emissions. As per estimates for 2022-23, the
steel sector accounts for over 35% (105.7 MMT CO2e) of the state’s total GHG emissions.
About 1.5 lakh (0.15 million) workers are associated with the crude steel plants. As per
government information, over 48,000 of them are direct workers and the rest are indirect
The steel workers. The overall employment dependence can be still higher considering the high
sector accounts proportion of informal engagement in manufacturing sectors.
for over 35% of
Odisha’s total GHG Besides crude steel-making units, over 22,700 workers are engaged with the sponge
emissions iron plants in various districts of the state.
A large number of workers are also associated with the iron ore mines that are closely
related to steel production. Overall, it is estimated that over 31,800 workers are formally employed
by these mines. Therefore, considering the value chain of the iron and steel sector, including employment in the
factories (direct and indirect workers) and the mines, over two lakh (0.2 million) workers are formally employed.

Table 6: Iron and steel sector


Type of units No. of units Production capacity (MMTPA) Formal workforce
Iron and steel plants 52 33.5 48,114
Sponge iron units 83 13.4 22,759
Total iron and steel units 147 70,873
Total iron ore mines 67 297.2 31,800
Source: iFOREST analysis based on data provided by the Department of Steel and Mines, Government of Odisha, 2024; and Joint Plant
Committee Report 2022-23

16
Transition hotspots, challenges, and opportunities
Hotspots: The iron and steel-making units are concentrated in districts that are the largest producers of iron
ore and coal. There are two large iron and steel clusters in the state.
Sundargarh district and adjoining Sambalpur and Jharsuguda districts constitute the largest crude steel-
producing region with 24 plants and a cumulative production capacity of over 12.5 MMTPA. The other key steel
production cluster is Angul and adjoining Dhenkanal district, with about 12.25 MMTPA collective production
capacity. For sponge iron, Sundargarh has 50% of the sponge iron units with a production capacity of 3.3 MMTPA.
Challenges: With an ambitious target of reaching 100 MMT of crude steel production capacity by 2030, the
key transition issue for the steel sector is the rapid transition to green steelmaking to reduce emissions from
the sector while increasing efficient resource use. Another important aspect will be shifting the sponge iron
units to cleaner production processes. At the same time, considering the large direct and indirect income
dependence on this sector, a plan for workforce transition with well-designed skilling and
reskilling measures will be crucial.
100 MMT
Opportunities: Odisha, with its significant share of India’s steel production, holds a crude steel
pivotal position in achieving India’s industrial decarbonisation and energy transition production target
goals. The state has an ambitious plan for developing green hydrogen/green ammonia by 2030 necessitates
hubs and developing a dedicated policy, which should be leveraged to develop a green rapid decarbonisation
measures for the
steel sector in the state. One of the initiatives the state can take is to ensure that the
sector
future steel plants are hydrogen-ready.
Besides, the steel sector’s growth trajectory in the state also needs to be aligned with the
decarbonisation vision for the sector set forth by the Ministry of Steel, including enhancing energy efficiency,
material efficiency, RE use, process transition, and deployment of carbon capture, utilization, and storage
(CCUS) technologies.

ALUMINIUM
Odisha is the largest aluminium-producing state in India, accounting for 54% of the country’s aluminium smelting
capacity. The state also has almost 75% of India’s total bauxite reserves which has supported the growth of the
industry in the state.
80%
The GHG emissions from the aluminium sector in Odisha have rapidly grown over the
of primary
aluminium GHG last decade, with a CAGR of 10% from 2012-13 to 2022-23. The estimated emissions from
emissions are the sector in 2022-23 is about 4.5 MMT CO2e.
related to the
smelting Combining aluminium smelters and alumina refineries, the sector employs about
process 19,700 formal workers. The actual employment dependence is much higher considering
informal workers associated with the sector.

Table 7: Aluminium sector


Unit type No. of units Production capacity (MMTPA) Formal workforce
Aluminium smelter 5 2.79 15,398
Alumina refinery 3 5.78 4,300
Total aluminium and alumina units 8 19,698
Total bauxite mines 5 21.61 4,830
Source: iFOREST analysis based on data of Indian Bureau of Mines, 2023, and Odisha State Pollution Control Board, 2024

Transition hotspots, challenges, and opportunities


Hotspots: The aluminium smelters are located in key industrial districts, Angul, Sambalpur, and Jharsuguda.
The refineries are located in the rural districts of Koraput, Rayagada, and Kalahandi. The latter three districts
are also where the state’s bauxite mines are concentrated.

17
Challenges: Aluminium production is an energy-intensive process and requires a constant supply of electricity.
The key transition challenge in the aluminium sector is the change in the source of electricity, particularly for
smelting, as about 80% of primary aluminium GHG emissions are generated from the smelting process.
Opportunities: The most important measure to reduce emissions from this sector is to source electricity from
low-carbon or RE sources such as hydroelectric, solar, or wind power. Enhancing energy efficiency in both
alumina refining and aluminium smelting processes will also be important.

CEMENT
Unlike the steel and aluminium sectors, while Odisha does not dominate India’s cement- 60% of
producing landscape, it is important to consider a just energy transition as the industry the cement
leaders are considering that eastern and southern regions can lead the sector’s production capacity
expansion in the coming years. is in Sundargarh,
an industrial and
There are 20 cement plants including integrated units, grinding units, and clinker mining hotspot
units. While employment dependence on these plants is much less than in the steel sector,
nonetheless it is significant. Overall, the formal workforce associated with the cement plants
is about 6,116. Further, the sector is estimated to employ about 20,000 people downstream for every MMT of
cement produced.

Table 8: Cement sector


Type of Unit No. of units Production capacity (MMTPA) Formal workforce
Integrated unit 3 11.7 2,454
Grinding unit 15 23.1 2,312
Clinker unit 2 5.4 1,350
Total cement units 20 6,116
Total limestone mines 5 21.6 865
Source: iFOREST analysis based on data provided by Odisha State Pollution Control Board, 2024, and Indian Bureau of Mines, 2023

Transition hotspots, challenges, and opportunities


Hotspots: While cement units are located in six districts of Odisha, about 64% of the production capacity is
concentrated in two districts, Sundargarh (over 13 MMTPA) and Cuttack (over 12 MMTPA). One integrated plant,
both the clinker units, and 10 out of 15 grinding units are located in these districts.
Sundargarh also has the largest number (four) of limestone mines in the state, a raw material for cement
production, and accounts for over 88% (15.43 MMTPA) of the state’s limestone production capacity.
Challenges: Despite adopting commendable energy efficiency measures, a critical issue of energy transition
for the cement sector is the shift to non-conventional and green energy sources for cement production. The
cement industry currently relies heavily on coal, both for fuel and electricity.
Opportunities: To decarbonise the cement industry, reducing the proportion of clinker in cement will be
essential. Clinkers can be substituted with alternative materials, such as fly ash, metal slag, or calcined clay.
The use of limestone instead of clinker is also being considered as a viable option. Shifting to non-conventional
energy sources in the production process will also be required. This may include, waste-derived fuels and
hydrogen-based energy.

BUILDING AND CONSTRUCTION


The building and construction sector is a significant contributor to GHG emissions, primarily driven by energy
use in construction processes, embodied carbon in building materials, and operational energy consumption.
Overall, buildings account for over 40% of India’s total energy consumption, increasing at an annual rate of 8%

18
With (including embodied plus operational energy). The sector contributes 32% to India’s total
over 98 lakh GHG emissions, with embodied emissions making up 40% and operational emissions
projected urban accounting for 60%.
population by 2031,
reducing emissions The construction sector is an important component of Odisha’s economy
from the building and contributing 6.9% of the State GSVA and 16% of the industrial GSVA in 2023-24. The
construction sector sector is also a significant employment generator. As of 2022-23 estimates, 17% of
will be crucial
the total workforce in the state is engaged in the construction sector.

Transition hotspots, challenges, and opportunities


Hotspots: The urban and peri-urban areas of Odisha remain the hotspots for the green transition of the building
and construction sector. The data on registered construction workers show that over 63% of the registered
construction workers are concentrated in Cuttack, Sundargarh, and Khorda districts. Overall, about 14 districts
in the state have at least over one lakh registered construction workers.
Challenges: The construction sector in Odisha is expected to grow significantly due to demographic and spatial
changes from urbanisation, inter-state and intra-state migration, and the expansion of peri-urban areas.
Between 2001 and 2011, the urban population in the state increased by 26.8%, which is double the national
growth rate, reaching about 70 lakh people. By 2031, the urban population is expected to reach about 98.5 lakhs.
The growth will create increased demand for buildings and other construction.
Opportunities: A key opportunity lies with the optimisation of material and resource use for the building and
construction sector. Increasing material efficiency will involve the optimisation of resource use in the design,
construction, and operation of buildings. Also, the construction of green buildings and increasing energy
efficiency will be important. Simultaneously, decarbonisation of the cement, steel, and aluminium sectors will
be crucial to minimise embodied emissions.

B. Overall Outlook
Considering Odisha’s heavy reliance on fossil fuel sectors and fossil fuel-dependent industries, a just transition
policy and strategy, addressing the socio-economic and environmental aspects of the energy transition will
be crucial.

1. A planned transition of coal mining, coal-based power, and steel sector will be crucial for ensuring a
comprehensive just energy transition and green growth over the next 30 years.
Odisha, with India’s largest coal production capacity and a strong industry base powered by coal, will need
comprehensive planning across various sectors to ensure a just energy transition in the state. However, three
sectors are most significant to planning the transition -- coal mining, coal-based power (utility and captive
plants), and the steel sector. They account for about 84% of GHG emissions in the state. Besides, they account
for about 14% of the formal workforce.
A planned transition of these sectors will help minimise disruptions to the workforce, manage the
socio-economic impacts on local communities, and ensure that green growth pathways through industrial
investments and restructuring emerge as viable alternatives to support robust green economic growth in the
state in the coming years.

2. Seven districts, including the Angul-Dhenkanal energy and industrial cluster in the eastern part, and
Jharsuguda-Sundargarh-Sambalpur in the north-western part are the hotspots for just energy transition.
Overall, seven districts are highly significant from an energy transition perspective. These include Angul,
Dhenkanal, Jajpur, Jharsuguda, Sundargarh, Sambalpur and Kendujhar districts. These districts account for
100% of the coal mines and utility-scale coal-based power capacity. Besides, they also account for 88% of the
coal-based captive power capacity considering the large presence of industrial activities.

19
Considering factories, these districts also are the key producers of iron and steel. They account for 97% of
the crude steel capacity, 94% of the sponge iron capacity, and a majority of the iron ore mines, accounting for
99% of the production capacity. They also account for 100% of the aluminium (aluminium smelter) production
capacity and 65% of the cement capacity (integrated plants).

Map 1: Hotspot districts

Type of Industries Sundargarh


Kendujhar
Coal mine
Thermal power plant Jharsuguda
Steel plant
Sponge iron plant Sambalpur
Aluminium plant Jajpur
Cement plant Angul Dhenkanal

3. The energy transition will impact at least 10 lakh workers involved in the mining, electricity, manufacturing,
and construction sectors.
The green energy transition will primarily have implications for coal mining, coal-based power, and at least 76%
of all factories (those in the high-impact and medium-impact category) operating in Odisha. They collectively
employ more than 10 lakh formal workers (over a million).
This is a very conservative estimate, as the employment in the construction sector has only been considered
for the seven hotspot districts, and considered the registered workers. Besides, a large proportion of workers,
including informal workers, associated with the value chain of these industries will be impacted.

C. Fostering Opportunities for Green Growth and Jobs


A key objective of just transition is to ensure green growth and social vitality of regions that will be impacted
by the energy transition and enhance opportunities for green jobs for the impacted workforce and the local
community.

1. Repurposing mining and industrial wasteland to develop green energy and green industry infrastructure can
support the achievement of renewable energy targets while boosting local employment opportunities.
Repurposing mining lands in Odisha offers a strategic opportunity to develop green energy infrastructure and
promote green industries, aligning with the state’s RE and other decarbonisation targets. These broken-up land
parcels can be repurposed for such activities as they already have the necessary infrastructure around them.
An assessment done by iFOREST shows that Odisha has 1,680 ha of mining wasteland and 3,990 ha of industrial
wasteland. Besides, about 11,000 ha of coal mining land can be available for repurposing by 2030 following
the scientific closure of mines.

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Table 9: Availability of mining and industrial wasteland
Land type Land available (ha)
Mining wasteland 1,680
Industrial wasteland 3,990
Total 5,670
Source: iFOREST analysis based on wasteland atlas of the Government of India and ISRO remote sensing data

The Government of India has also recognised the merits of repurposing mining land available to the coal
industry. In April 2022, the Union Cabinet gave a nod to a set of policy guidelines allowing the development of
certain coal and energy infrastructure and social infrastructure in land acquired under the Coal Bearing Areas
(Acquisition and Development) Act of 1957. Recently in June 2024, the Ministry of Coal promulgated (draft)
revised guidelines for coal mine closure, under which for the first time the repurposing of mining land has been
specified in the context of ‘just transformation’ of the local communities.

2. Setting renewable energy targets for the mining sector can help to reduce direct and indirect emissions
related to mining operations.
Mining operations use fossil fuels and electricity for activities like extraction, processing, material movement,
and transportation. Switching to RE sources can help reduce Scope 1 and Scope 2 emissions from the sector.
Considering the expansive ongoing mining activities in the state and the foreseeable future, it will be
important to set progressive RE adoption targets for the sector. Such targets will not only improve the sector’s
green performance but will also boost the confidence of financial institutions and investors, as RE-powered
operations improve ESG (Environmental, Social, and Governance) ratings of industries, making companies more
attractive to investors.

3. To decarbonise the steel sector, a phased approach of green hydrogen adoption by the industry will be
essential.
Decarbonisation of the steel sector in Odisha will be essential for green industrial growth and overall reducing
emission intensity of the state’s economy. The government can mandate the establishment of greenfield
‘hydrogen-ready steel plants’ from 2025 onwards, and also retrofit the pre-existing ones.
Thereafter, a phased adoption of green hydrogen as energy can be mandated. This can be 10% hydrogen as
energy by 2030, 25% by 2035, 50% by 2040, 75% by 2045 and 100% by 2050. This will complement Odisha’s green
hydrogen ambition. Essentially, by 2035, the focus should shift to green hydrogen-based steelmaking alongside
the adoption of CCUS technologies as they become viable.

4. Promoting green growth will be crucial for enhancing jobs and economic opportunities.
As traditional industries associated with high carbon emissions will need to transition in the coming years,
there will be chances of job losses and socio-economic disruptions if timely measures are not implemented.
Boosting employment opportunities in green economic sectors will be crucial for retaining jobs and creating
new employment opportunities.
The Industrial Policy Resolution (IPR, 2022), and the latest Economic Survey Report (2024), of the State
Government have also emphasised certain sectors to support the state’s industrial and economic growth and
employment generation. These include green energy, green manufacturing, and electric mobility (e-mobility),
among others. The Government has also emphasised the development of an industry-ready skilled workforce.
i. Green energy: Odisha has significant potential for green energy development and boosting employment
opportunities in the RE sector. For example, considering the state’s 11 GW RE target by 2030, the sector can
generate at least 32,300 full-time employment (FTE).

21
Table 10: Employment opportunities in RE
Sector Parameters Total
Solar Capacity target (GW) 7.5
Estimated FTE 25,875
Wind Capacity target (GW) 2
Estimated FTE 2,540
Small hydro Capacity target (GW) 0.19
Estimated FTE 760
Large hydro Capacity target (GW) 0.06
Estimated FTE Not estimated
Pumped Storage Plant Capacity target (GW) 1.2
Estimated FTE 3,000
Total RE Capacity target (GW) 10.95
Estimated FTE 32,175
Source: iFOREST job assessment based on Energy Department, Government of Odisha targets noted in September 2024 and using
employment factor approach for each category.
The solar employment estimates are based on the employment factor for ground-mounted solar.

However, the overall potential of RE jobs is much higher considering the RE potential of the state that can be
harnessed. An assessment of RE potential by iFOREST, considering the modest use of wasteland and reservoirs,
shows that solar potential alone is about 170 GW.
Besides RE, the state also has set a target of achieving a production target of green ammonia at 5.8 MMTPA
by 2030, along with 0.1 MMTPA green hydrogen and 0.5 MMTPA other derivatives. These will also be important
for creating green jobs.
ii. Green metals and mining: Odisha, with its vast reserves of minerals such as iron ore, bauxite, and manganese,
holds a central role in India’s green transition by enabling the growth of green metals and sustainable mining
practices. This transition presents significant opportunities for Odisha to diversify its mining sector, sustainable
mining technologies, and mineral recycling, while simultaneously generating green jobs through responsible
mineral extraction, beneficiation, and value-added processing.
iii. Green manufacturing: The manufacturing sector in Odisha remains crucial for the state’s green growth and
green jobs pathway with already a share of 54% of the industrial GSVA. To maintain a strong manufacturing
sector, it will be essential to increase green manufacturing. The state can promote the manufacturing of electric
vehicles (EVs), solar PV panels, and batteries for energy storage, which will not only drive the transition to clean
energy but also boost domestic production of high-value products and create jobs.
iv. Green construction and green infrastructure: Odisha is experiencing rapid urbanisation with the urban
population expected to reach 98.5 lakhs by 2031. Therefore, green construction will be crucial for the sector.
This will involve material transformation and use in construction and infrastructure development. It will require
the development of a workforce across the value chain, such as the use of sustainable building materials, energy
efficiency of buildings, green utilities, and green certification, among others.

4. Strengthening the skilling ecosystem through government and industry engagement will be necessary to
develop the future workforce.
To enable a just transition for workers from fossil fuel industries and prepare them for emerging opportunities,
integrated skilling programs across sector-specific value chains are essential. Both government and industry
investments in skilling and reskilling will be critical to help workers adapt to new roles in green sectors and
remain agile in a dynamic job market.
The State Government has taken significant initiatives in recent years to expand the skilling ecosystem in
the state. Some of the relevant key schemes are Nutana Unnata Abhilasha (NUA) Odisha, the Placement-linked

22
Training Programmes (PLTP), the Nanu Unicorn scheme, and Swakalpa. A state-of-the-art skilling institute, the
World Skill Centre (WSC), augments the skilling infrastructure and resources besides the Industrial Training
Institutes (ITIs) and polytechnics.
However, the current skilling ecosystem does not yet adequately address the growing demand for jobs in
various renewable energy segments, and other emerging green and high-tech industrial sectors.
To meet the rising demand, the green skills ecosystem needs further strengthening. Initiatives like the WSC
and flagship schemes such as NUA Odisha, with their emphasis on advanced technology and digital skills are
well-positioned to accommodate the need for workforce development for renewables, green manufacturing,
and green construction. The courses and training modules need to be further strengthened based on in-depth
skill gap assessment, potential demands, and market outlook. The PLTP, which has one of the highest placement
rates, should also modify the courses and training modules to incorporate emerging green sectors to leverage
its outreach and employability focus.
Industry involvement is equally crucial in workforce transition efforts. Subsidiaries of Coal India Limited (CIL),
including Mahanadi Coalfields Limited (MCL), have established just transition cells to support the transition of
coal mines and local communities. Similar industry-led initiatives will play a vital role in workforce transition
within other sectors such as power, steel, and aluminium.
These collaborative efforts will ensure that workers are not only equipped to meet current demands but are
also prepared to thrive in a sustainable economy.

D. Policy Support
Having well-designed policies, plans and institutional mechanisms will be important to support a well-planned
and well-managed just energy transition.

1. The development of a State Just Transition Policy will be necessary to ensure a just and inclusive energy
transition.
Considering the scale of impact and the diversity of sectors involved, a comprehensive State Just Transition
Policy will be required to ensure a well-planned and well-managed transition in Odisha. The policy will be
important to guide the following aspects:
i. Economic diversification and innovation: Will be essential to support the economic vitality and development
of regions impacted by the transition.
ii. Fostering an ecosystem for green investments: This will be important for accelerating the transition to
green energy and green industries, with a focus on districts where fossil fuel industries are concentrated.
iii. Workforce transition and human resource development: Will be required to ensure adequate job security,
payments at the time of retrenchment (severance pay), and compensations for all workers engaged in
industries that the transition will impact.
iv. Social welfare: Will be required to provide timebound support to informal workers, widows, marginalised
communities in the fossil fuel areas to be impacted by the transition, and to safeguard against immediate
transition shocks.
v. Augmenting social and physical infrastructure development: Will help to improve social capital and attract
businesses and investors to ensure economic vitality.
vi. Mobilising financing: A well-designed policy will be essential for mobilising public and private finances to
support a just transition.
vii. Institutional structure: The policy will provide the necessary guidance to develop a dedicated institutional
structure and mechanisms for supporting a just energy transition.

23
2. Development of regional just transition plans will help to support inclusive growth.
Given the regional concentration of various industrial activities, regional just transition plans will be necessary
to strengthen opportunities for inclusive growth. These plans will also help to attract green investments and
ensure economic stability and job preservation in these areas. They will also be crucial for addressing the needs
of informal and migrant workers. These workers often move between regions and industries based on available
opportunities.
The regional just transition plans could be structured around a 10-year transition strategy, providing a
framework for crafting just transition measures at the regional and district levels.
The priority clusters for the development of regional just transition plans are the Angul-Dhenkanal cluster,
the Sundargarh-Sambalpur cluster, and the Jharsuguda cluster. These are going to witness the impacts of
green energy transition within the next 10 years.

3. Utilisation of coal cess and repurposing of District Mineral Foundation funds can support just transition in
coal districts.
As Odisha plans for a just energy transition, it is essential to allocate social welfare funds toward sustainable
livelihoods, skilling and reskilling, and strengthening resilient social infrastructure. The District Mineral
Foundation (DMF) funds and coal cess represent the most critical public financing sources for supporting
localised transition measures. These funds align with broader goals of environmental sustainability, clean
energy promotion, and public welfare.
Odisha has the maximum DMF accrual in India amounting to over I25,858 crore (I258.58 billion) which is
nearly 30% of India’s total. Further a long-term assessment of DMF contributions over the next four decades
estimates that ongoing and planned coal mining expansions (excluding allocated coal blocks) could generate
over I39,764 crore (I397.64 billion) by 2060. Additionally, DMF funds from the extraction of other major minerals
will be instrumental in supporting just transition efforts in key mining districts such as Sundargarh, Kendujhar,
Jharsuguda, and others that are essential to the industrial supply chain.
The coal cess, currently integrated into the GST compensation cess, is another significant financing tool.
With a levy of I400 per tonne of coal production and imports, it is estimated that I3,52,592 crore (I3.53 trillion)
could be generated. This provides a substantial pool of resources to fund just energy transition initiatives across
the state. Odisha and other coal-producing states should work with the central government to meaningfully
utilise coal cess for green growth and just energy transition.
Overall, effective management of these funds will be crucial for enabling a smooth transition, ensuring both
economic growth and social welfare in Odisha’s key industrial and mining regions.

24
Introduction
Odisha, one of India’s most resource-rich states, is endowed with abundant coal and mineral resources. The
availability of coal and other raw materials for industries has played a central role in positioning the state as a
significant contributor to the country’s energy and industrial production. The state is home to major industries
such as steel, aluminum, and cement, among others.
The industrial sector remains pivotal for the state’s economy, contributing 43.3% to the Gross State Value
Added (GSVA) at current prices.1 Within this sector, manufacturing leads with a 54% contribution to the
industrial GSVA. This is followed by mining and quarrying with a share of 22%, the construction sector with 16%,
and electricity, gas, water supply, and other utility services having a share of 8%.2
However, the industrial sector in Odisha is highly fossil fuel-dependent and energy-intensive, which has
resulted in overall elevated GHG emissions.3 The state’s greenhouse gas (GHG) emissions have increased at a
compound annual growth rate (CAGR) of about 5.6% over the last decade. As per estimates for 2022-2023, the
total GHG emission is estimated to be 305.2 million metric tonnes of CO2e (MMT CO2e), which is about 9.7% of
India’s total GHG emissions. The emission intensity of the state is 671 MT CO2e per crore GSDP (real). While the
emission intensity has reduced by 7.3% below 2005 levels in 2022-23, it is much lower compared to the country’s
overall achievement of 33% reduction of emission intensity from 2005 level, signaling need of rapid measures.
The state is also highly vulnerable to climate change impacts and frequented by extreme weather events, such
as cyclones, heat waves, storm surges, and floods. Rainfall patterns in the state have been more erratic since
the 1960s, with below-normal rainfall across all districts being recorded for most years. The normal 120 days
of monsoon rain has been reduced to 60-70 days. Besides, extreme rainfall days of over 200-250 millimetres/
day have become more frequent. Besides, there are also heatwaves which are worst for industrial districts and
areas.4 The state’s latest climate action plan (2021-2030) further predicts the frequency of extreme weather
events such as droughts and floods, will exacerbate in the coming years if proper mitigation measures and
climate-resilient developmental planning are not undertaken.5
The economic growth trajectory based on coal mining and fossil fuel-dependent industries, therefore, is
counterintuitive for Odisha. As per observations of the state government, the state’s rapidly growing economy,
increasing urbanisation, and per capita energy consumption, which currently is 1,200 KWh (higher than India’s
average of 1,119 KWh) and expected to be 1,535 KWh in 2030, will pose a challenge to climate action.6 Therefore,
the state must plan and build a low-carbon and climate-resilient economy in the coming years.
This report provides a cross-sectoral assessment of the just energy transition in Odisha. The report focuses
on assessing the fossil fuel sectors and the fossil fuel-dependent industries in the state which remain central for
the state’s industrial and economic growth in the future, but will also require a transition planning considering the
imperatives of building a low-carbon and resilient economy. The key sectors evaluated include fossil fuel sectors
including coal mining, oil, and gas, the electricity sector, the factories with focus on the iron and steel, aluminium
and cement sectors, and the building and construction sector.
The sectors have been analysed concerning their scale of operation, and spatial distribution to determine
the prospective regional impact from transition, the employment and livelihood dependence on these sectors,
and the transition opportunities and challenges. The assessment is based on secondary data and stakeholder
consultations at the state and district levels.
Based on the comprehensive assessment of the various sectors and considering the scale of the
transformation required, the report aims to provide a comprehensive understanding of the just energy
transition landscape of the state and inform the development of targeted strategies, policies, and investment
measures, by both the State Government and various industries, that will be necessary to guide the state
towards a more sustainable and equitable energy future.
The overarching goal is to ensure that Odisha’s transition to a low-carbon economy is not only environmentally
sustainable but also socially inclusive, protecting the livelihoods of those most affected by the shift and
promoting new economic opportunities for a resilient future.

25
26
SECTION I

FOSSIL FUEL
SECTORS
Chapter 1: COAL MINING

Chapter 2: OIL AND GAS

27
CHAPTER 1

Coal mining
1.1 Overview
Coal is critical for India’s energy security, with the country being the world’s second-largest coal producer.
Currently, coal accounts for nearly 70% of India’s electricity generation. In 2023-24, India produced over 998
million metric tonnes (MMT) of coal to meet its domestic energy demand. Odisha, currently India’s top coal
mining state, alone accounted for 25% of the total production1.
Coal production in has grown at a CAGR of 7.3% from 2014-15 to 2023-24. Mahanadi Coalfields Limited (MCL),
a subsidiary of Coal India Limited (CIL), is the key producer of coal the state. The sector is further poised for
expansion with Odisha currently having the highest estimated coal reserves in the country, which is about
24.5% of India’s total estimated reserves of 3,52,126 MMT. It is also viewed as a key player in meeting India’s coal
demand in the coming years.

1.2 Production
In the year 2023-24, Odisha produced about 237 MMT of coal combining operational and captive mines2. Out
of this over 206 MMT was produced by commercial mines of MCL. Overall, the state accounted for nearly one-
fourth (24%) of the country’s total production.
Overall, the state’s share in the country’s coal production has ranged from 19.95% -24.52% over the last ten
years. The coal production has seen a steady growth between 2012 and 2023.

Table 1.1: Coal resources in Odisha


Proved (MMT) Inferred (MMT) Indicated (MMT) Total (MMT)
48,572.58 34,080.42 5,451.6 88,104.6
Source: Provisional Coal Statistics 2022-23

Figure 1.1: Year-wise coal production in Odisha


250

200
Production (MMT)

150

100

50

0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24

Source: Provisional Coal Statistics, 2022-23; and Department of Steel and Mines, Government of Odisha, 2024

28
1.3 Operational status
Odisha’s coal production comes mainly from opencast (OC) mines, which contribute 99% of its output. The
underground (UG) mines contribute only 1% of total production.
Coal production in the state is dominated by MCL. There are 19 operational mines of MCL with a production
capacity of over 294 MMTPA. Another opencast mine (Subhadra) with a capacity of 25 MMT is expected to start
operation in 2026 in the Angul district. This will take the total production capacity of MCL mines to about 319
MMTPA.
Besides, MCL commercial mines, there is also a coal mine of SCCL (Naini) located in Angul. The mine with a
production capacity of 10 MMTPA is supposed to commence production in 2024.

Table 1.2: Operational coal mines (commercial)


Mine name District Block Type of Production Production
mine (OC/ capacity (MMTPA) (MMT) in 2023-
UG) as per 2023-24 24

Talcher UG 0.27 0
Nandira UG 0.33 0.06
Lingaraj OC 20 17.54
Kaniha OC 14 11.81
Ananta OC 20 20
Angul Talcher
Hingula OC 15 13.06
Bharatpur OC 20 11.12
Jagannath OC 7.5 7.5
Bhubaneswari OC 30 24.24
Balram OC 8 7.74
Kulda OC 21 21
Garjanbahal OC 18.2 18.2
Sundargarh Hemgir
Basundhara OC 8.75 1.43
Siarmal OC 50 7.24
Lajkura OC 4.5 4.5
Samaleswari Jharsuguda OC 15 8.06
Integrated Belpahar, Jharsuguda and
Lakhanpur OC
Lakhanpur, Lilari 40 32.2
Orient Mine No. 1&2 UG 0.87 0.2
Hirakhand Bundia
Jharsuguda Jharsuguda UG 0.95 0.2
Incline (HBI)
Total 294.37 206.1
Source: Coal India Limited as of August 2024

29
CLOSED MINES
Seven coal mines in Odisha are temporarily or permanently closed. The closed mines are located in Talcher
block of Angul district and Jharsuguda block of Jharsuguda district, which are key coal-producing regions
in Odisha.
Overall, above 4,700 ha of land is available with these mines. Out of this about 1,285 ha of land is available
with OC mines and the rest with UG mines. The land available with OC mine, such as South Balanda, can be
considered for repurposing to support local economic activities.

Table 1.3: Closed coal mines


Mine name District Block Type of mine Operational status Total lease
(OC/UG) area (Ha)
Chhendipada Angul Chhendipada OC Temporarily closed 76.3
Deulbera Talcher UG Temporarily closed 954.1
Handidua Talcher UG Temporarily closed 553.6
South Balanda Talcher OC Permanently closed 1208.7
Orient Mine No.3 Jharsuguda Jharsuguda UG Temporarily closed 1421.8
Orient Mine No.4 Jharsuguda UG Temporarily closed 519.5
Hindegir Rampur NA UG Permanently closed NA
colliery
Total 4,733.7
Source: Mahanadi Coalfields Limited, 2022 and 2024; NA= Not available

Apart from the commercial coal mines, there are also several captive coal mines with a production capacity
of about 58.6 MMTPA. These mines are operated by companies such as NLC Limited, NTPC, NALCO, Odisha Coal
and Power Limited (OCPL), Vedanta Limited, and GMR Chhattisgarh Energy Limited (GCEL).3

Table 1.4: Captive coal mines


Name of the mine District Block Type of Company name Production Production
mine capacity (MMT)
(MMTPA) 2022-23
Dulanga Sundargarh Hemgir OC NTPC 7 5.3
Talabira II & III Sambalpur Rengali/ OC NLC India Limited 20 6.36
Katerbaga
Talabira I Sambalpur Rengali/ OC Adani Enterprises 3 0
Katerbaga Limited
Manoharpur and Dip- Sundargarh Hemgir OC Odisha Coal and 16 5.25
side of Manoharpur Power Limited
Jamkhani Sundargarh Hemgir OC Vedanta Limited 2.6 2.6
Utkal D&E Angul Chennipada OC NALCO 4 4
Radhikapur West Angul Chennipada OC Vedanta Limited 6 6
Total 58.6 29.51
Source: Department of Steel & Mines, Govt. of Odisha, 2024, and Environmental Clearance Letters of concerned mines

Overall, considering the operational commercial and captive mines, and mines that are supposed to
commence production (based on the current status of statutory permits), the state will have a total coal capacity
of 388 MMTPA within the next two to three years.

30
Table 1.5: Overall coal production capacity by 2025-26
Production type Production capacity (MMTPA)
Commercial 319
Captive 58.6
Total 377.6
Source: iFOREST analysis

Besides old operating mines and planned expansions, overall 21 coal blocks have been allocated in the state
since 2015 with a combined estimated extractable reserve of over 6,762 MMT. However, except for six mines
starting in these blocks, most of these blocks have not come into production yet. As per available information,
Naini is expected to commence production this year (2024).

Table 1.6: Allocated coal blocks


Coal blocks allotted No. of Extractable Date of Allottee
blocks reserve (MMT) allotment
Dulanga 1 141.55 08/09/2015 NTPC
Manoharpur & Dipside of 2 46.05 31/08/2015 Odisha Coal & Power Ltd.
Manoharpur
Naini 1 270.00 13/08/015 SCCL
Talabira - I 1 2.40 23/03/2015 GMR Chhatisgarh Energy Ltd.
Utkal E & D 2 171.37 02/05/2016 NALCO
Talabira II & III 1 546.61 02/05/2016 NLC
Chandrabila 1 550.00 24/02/2016 Tamil Nadu Generation and
Distribution Corp. Ltd.
Jamkhani 1 132.73 10/02/2020 Vedanta Ltd.
Mandakini 1 287.89 02/03/2020 KPCL
Utkal A 1 332.85 18/11//2021 MCL
Radhikapour (East) 1 172.00 03/03/2021 EMIL Mines and Mineral Resources
Ltd.
Radhikapour (West) 1 258.00 03/03/2021 Vedanta Ltd.
Kurloi (A) North 1 1,680.23 03/09/2021 Vedanta Ltd.
Utkal - C 1 196.35 10/10/2022 Jindal Steel and Power Ltd.
Utkal B1 & B2 2 347.08 10/10/2022 Jindal Steel and Power Ltd.
Bijahan 1 327.05 10/10/2022 Mahanadi Mines & Minerals Pvt. Ltd.
Bankhui 1 800.00 10/10/2022 Yazdani Steel and Power Ltd.
Alaknanda 1 500.00 12/12/2022 Rungta Sons Pvt. Ltd.
Total 21 6,762.16
Source: Provisional Coal Statistics, 2022, MSTC e-commerce portal, Ministry of Coal

Overall, the analysis of production and expansion plans of the coal mining sector shows that the state is poised
for a significant expansion in coal production over the coming years. The state will have 21 commercial mines
with a production capacity of 329 MMT by 2026. Besides, there are captive mines with a capacity of 58 MMT. In
addition to that 21 coal blocks have been allocated, which might come into production sometime in the future.

31
1.4 Spatial distribution
Commercial and captive coal mines in Odisha, are spread over four districts. These include Angul, Sundargarh,
Jharsuguda, and Sambalpur. Among the four districts, Angul has the largest number of coal mines with 12 mines
located in three blocks i.e., Talcher, Chhendipada and Kaniha. This is followed by Sundargarh with seven mines
Jharsuguda with five mines, and Sambalpur with two mines.

Map 1.1: Spatial distribution of operational coal mines

Sundargarh
4 (97.95)
00 = Commercial mines 3 (25.6)
00 = Captive mines Angul
Capacity (MMTPA) in 10 (131.1)
Jharsuguda
paranthesis 2 (10)
5 (61.32)
Sambalpur
2 (23)
O D I S H A

Source: iFOREST analysis

1.5 Land availability


Considering the scale of mining operations, a large amount of land is available for coal mines. An assessment of
land available with operational mines and closed mines, and mines to commence operation (by 2026) in various
districts of the state shows that over 29,600 hectares (ha) of land is available with these mines. Besides, the
commercial mines, about 6,830 ha of land is available with the captive mines.

Table 1.7: Land available with operational and closed coal mines
District Land available with operational Land available with closed Land Total land with Total
mines (ha) mines (ha) with mine commercial land with
to start operational+ captive
OC mines UG mines Total land OC mines UG Total land operation closed+ mines
mines Total upcoming (ha)
Land (ha) mines (ha)
Angul 8,929.7 1,510 10,439.7 1,285 1,507.7 2,793 1,145 14,377.5 1,349.3
Sundargarh 3,902.4 0 3,902.4 0 0 0 3,902.4 3,396.5
Jharsuguda 6,455.5 2,953 9,408.4 0 1,941.2 1,941* 11,349.6
Sambalpur 0 0 0 0 0 0 0 2,084.3
Total 19,287.6 4,463 23,750.5 1,285 3,448.9 4,734 1,145 29,629.5 6,830
Source: Data as obtained from MCL, 2024; Latest EC letters of various captive mines
*The area reflects the total lease area of two out of the three closed UG mines. For one mine, which is over 120 years old, land area was
not available.

A block-wise analysis further shows that the maximum amount of land is concentrated in just two blocks,
Talcher in Angul district, and Jharsuguda block in Jharsuguda district. These two blocks have about 77% of

32
the land that is available with the operational mines. Besides, six out of the seven closed mines in the state are
located in these two blocks (three in Talcher and three in Jharsuguda). In Talcher block, the total land available
with the closed mines is about 2,716 ha, and in Jharsuguda block is at least 1,941 ha.

Table 1.8: Block-wise mine land availability (under operational and about to commence operation)
District Block Commercial mines (ha) Captive mines (ha)
Operational Closed
Angul Talcher 9,721.73 2,716.44 -
Talcher-Chhendipada 1,145 - -
Chhendipada - 76.3 1,349.25
Kaniha 718 - -
Sundargarh Hemgir 3,902.4 - 3,396.5
Jharsuguda Jharsuguda 9,408.4 1,941.23 -
Sambalpur Rengali/ Katerbaga - - 2,084.3
Total 24,895.53 6,830.05
Source: iFOREST analysis

33
1.6 Employment and workforce
The coal mines employ a large number of workers in the coal-producing districts directly and indirectly. As per
information obtained from MCL, the total number of formal workers (including departmental and contractual
workers) is 35,4404. Talcher block in Angul district has the highest income dependence, with about 57% of MCL’s
formal workers.
Concerning the captive mines, while mine-wise worker data could not be obtained for all mines, however, by
applying an employment factor approach, it can be estimated that about 5,075 formal workers are associated
with these mines.
Overall, considering both commercial operations and captive mines, currently, about 40,515 people are
formally employed by these mines.
For informal workers, district-level workforce assessment in the Angul district shows that the number of
informal workers is about 1.6 times the number of formal workforce5. Considering this proportion, the number
of informal workers associated with the coal mines in Odisha can be estimated to be 64,824.

Table 1.9: Workforce of MCL mines (as of April 2024)


Mine name District Block Departmental Contractual Total formal
workers workers workers
Ananta Angul Talcher 1,283 2,274 3,557
Jagannath 1,020 715 1,735
Bhubaneswari 738 1,461 2,199
Bharatpur 2,048 1,267 3,315
Lingaraj 1,762 1,584 3,346
Hingula 1,388 1,268 2,656
Balaram 1,382 812 2,194
Nandira 793 94 887
Talcher 210 52 262
Kaniha Kaniha 555 887 1,442
Samaleswari Jharsuguda Jharsuguda 627 1,077 1,704
Lajkura 382 516 898
Integrated Lakhanpur, 1,575 3,707 5,282
Belpahar, Lilari
Orient Mine 1&2 591 59 650
Hirakhand Bundia Incline 652 64 716
Kulda Sundargarh Sundargarh 324 729 1,053
Garjanbahal 645 1,535 2,180
Siarmal 57 795 852
Basundhara 360 152 512
Total 16,392 19,048 35,440
Source: As per information provided by MCL, 2024

34
Table 1.10: Estimated formal workers in coal mines
Type of mine Total formal workers
Commercial 35,440
Captive 5,075
Total workers 40,515
Source: iFOREST analysis

Besides formal and informal employment related to coal mining activities, a large number of workers are
associated with coal transportation. Besides, there is also employment dependence on coal washeries. Since
the income of these workers is directly tied to coal production in the state, therefore, they constitute an
important part of the workforce who are dependent on the coal sector for income.
While there is no official information on the number of coal transportation workers in the state, district-level
studies undertaken by iFOREST in Angul and official feedback received from the coal companies provide an
understanding of the number of workers associated with coal transportation (by trucks/road).6 As per the study,
nearly 55,000 workers are involved in coal transportation activities (including drivers, cleaners, helpers, etc.),
which is equivalent to the total number of formal and informal workers directly dependent on coal mining.
Concerning coal washeries, there are eight washeries in the state with a cumulative processing capacity
of about 26 MMTPA. All the washeries are privately owned. Four of the eight are in Angul, whereas two are in
Jharsuguda, and one each in Sambalpur and Sundargarh. One Coal washery by MCL is under construction i.e. IB
Valley Washery at Lakhanpur Project for despatch of washed coal7.
While an official workforce estimate was not shared by the coal washeries, however, considering the EC letter
of the Aryan coal washeries and by applying an employment factor approach, it is estimated that about 1,200
workers are formally associated with these washeries.

Table 1.11: Operational coal washeries


Owner Name of washery District Production
capacity (MMTPA)
ALPS Mining Services ALPS washery (formerly Bhatia coal washery) Jharsuguda 2
Aryan Coal Talcher Aryan washery Angul 2.3
Beneficiation (India) Talcher ACB washery Angul 7
Ltd. Aryan Ispat & Power Pvt. Ltd. washery Sambalpur 0.7
Hemgir washery Sundargarh 5
Global Coal & Mining
Pvt. Ltd. (GCMPL) GCMPL Talcher washery Angul 4
GCMPL Jharsuguda washery Jharsuguda 4
Utkal Energy Ltd. Utkal Angul 1.08
Total 26.12
Source: Provisional Coal Statistics, Coal Controller’s Organisation 2022-23

Besides, such direct and indirect dependence, coal mining also creates significant induced employment
among the local community. An induced economy in a mining area typically includes sectors that are not coal
mining and related industries, but sectors that are affected by coal mining8.
While there is no estimate of coal-induced workers, iFOREST survey in the Angul district of Odisha shows that
over 78,600 induced jobs are created due to coal mining in the district. This includes people engaged in retail/
small businesses, servicing and repairing, construction/ masonry, non-coal transportation, manufacturing,
services like banking and education, and miscellaneous labour (non-coal causal workers/daily wagers involved
in various construction sites, loading unloading activities in local businesses, etc.), within a 10 km radius from
mines/ mine clusters9. The induced economy creates a multiplier effect in the region and helps in socio-
economic growth.

35
1.7 Financial status
The financial status of operational coal mines in Odisha is robust. Out of 19 operational mines, data from 17 shows
that 14 are profitable, while 3 are operating at a loss—all of which are underground mines. In total, MCL has four
loss-making mines, including the three operational ones and one that is temporarily closed. The unprofitable
mines are concentrated in Jharsuguda block, except for one located in Talcher.10

Table 1.12: Unprofitable mines


District Block Mine Operational Status Unprofitable mines (UG)
Capacity Current
(MMT) production (MMT)
Angul Talcher Nandira Operational 0.33 0.08
Jharsuguda Jharsuguda Orient Mine No. 1 & 2 Operational 0.87 0.2
Orient Mine No. 4 Temporary Closed 0.5 0
Hirakhand Bundia Incline Operational 0.95 0.2
Source: Data as obtained from MCL; Lok Sabha Unstarred Question No. 2359 Profitability of Coal Mines 2021-22

1.8 Revenue contribution


The coal industry is a significant contributor to public revenue through taxes and cess. MCL’s total contribution
to the state exchequer was I18,546 crore (USD 570 million) in 2022-23. The compensation cess paid to the
central government is the stand-alone highest share of contribution to the public exchequer. For the state, the
most significant sources are the payment of income tax, Royalty, and DMF. The DMF funds also go directly to
the districts for developmental works and welfare activities in the mining-affected areas and the generation of
sustainable livelihood.

Table 1.13: Taxes and revenue contribution to central and state government
State/ Center Particulars Contribution amount (K Crore)
State Government Royalty 3,607.86
Both State & Central District Mineral Foundation 1,086.25
Government SGST 427.64
CGST 427.64
National Mineral Exploration Trust 71.68
Central Government
Central Government GST Compensation Cess 7,675.51
Income tax 5,250.00
Total contribution 18,546.58
Source: MCL Annual Report 2022-2023

Besides taxes and revenues, the funds generated from Corporate Social Responsibility (CSR) initiatives
constitute another contribution that the company makes towards welfare activities in the mining region. In
the year 2022-23, the company has spent I207.97 Crore against the mandatory CSR budgetary allocation of
I 195.68 crore.11

36
1.9 Just transition issues and opportunities
India is committed to a net-zero target by 2070, which will lead to a phasing down of coal production in the
coming decades. The country is expected to reach a coal peak around 2035.12 Odisha remains a crucial state for
meeting the country’s coal demand.
Besides, Odisha’s industry is also financially strong. Unlike, other coal states, such as Jharkhand, Chhattisgarh,
Madhya Pradesh, and West Bengal, most of the mines in the state are operating profitably.
Overall, an analysis of the operational coal mines in the state and planned expansions, suggests that there
are some challenges as well as opportunities in the next 15 years.

1.9.1 Mine closure challenges


Coal mines in Odisha are relatively new. Hence, many mines are likely to continue production beyond 2050.
However, considering India’s net zero timeline, and the opportunities that can be harnessed simultaneously to
phase-in green growth in the coal regions, a phase-down scenario for the sector is outlined below.
To determine a strategic phase-down schedule for the coal sector in the state, the following assumptions have
been taken into consideration:
a) The temporarily closed mine(s) and operational mines that are currently economically unviable and those that
are going to exhaust resources as per currently estimated reserves, can be closed by 2030.
b) For other mines, the approach will be to let them operate till the end of their life.
c) However, very old mines, that started operating in the 1980s-1990s, but have still a significant mine life left,
can be considered for closure between 2040-2050.

37
Considering this, by 2030, six mines (4 UG and 2 OC) can be closed. These mines are largely concentrated in
Talcher and Jharsuguda blocks. Except for the two OC mines, all are low-producing, and out of the 4 UG mines,
3 are unprofitable.
Between 2031-40, Talcher block will experience the transition of key mines, Lingaraj, Ananta, and Jagannath
due to exhaustion of resources. Overall, a total of six mines with about 80 MMT capacity will exhaust resources.
Between 2041-50, an additional three mines with 43 MMT capacity can be transitioned. However, three mega
mines will continue operating until 2060. The four mines that will continue to operate post-2050 have a total
annual production capacity of 134 MMT.
Overall, considering the concentration of mines and the transition scenario, the Talcher block in Angul district,
and the Jharsuguda block in Jharsuguda district remain most vulnerable to the transition starting this decade.

Table 1.14: Phase-down schedule of operational mines


Year Name of mine Block Mine type Capacity (MMT) Lease area
By 2030 Talcher Talcher UG 0.27 1140
Nandira Talcher UG 0.33 370
Kulda Hemgir OC 21 634.2
Samaleswari Jharsuguda OC 15 1334.91
Orient Mine No. 1&2 Jharsuguda UG 0.87 1857.24
Hirakhand Bundia Incline Jharsuguda UG 0.95 1095.71
Total by 2030 38.42 6,432.06
2031-2040 Lingaraj Talcher OC 20 1493.2
Ananta Talcher OC 20 1419.82
Jagannath Talcher OC 7.5 553.95
Garjanbahal Hemgir OC 18.2 653.83
Basundhara Hemgir OC 8.75 323.92
Lajkura Jharsuguda OC 4.5 721.29
Total between 78.95 5,166.01
2031-2040
2041-2050 Hingula Talcher OC 15 1870
Bharatpur Talcher OC 20 927.42
Balram Talcher OC 8 1309
Total between 43 4,106.42
2041-2050
2051-2060 Kaniha Kaniha OC 14 718
Bhubaneswari Talcher OC 30 638.34
Siarmal Hemgir OC 50 2290.45
Integrated Belpahar, Jharsuguda OC 40 4399.25
Lakhanpur, Lilari
Total between 134 8,046.04
2051-2060
Source: iFOREST analysis

38
1.9.2 Standard asset
A major concern for Odisha is the risk of stranded assets in the coal sector. This is due to the following reasons:

i. Capacity vs. Production


The current coal production capacity is about 352 MMTPA, whereas the production is 235 MMTPA, considering
both commercial and captive mines. The mines are, therefore, operating at 67% capacity. Odisha can easily
produce more than 115 MMT from the existing mines by increasing operational efficiency.
Therefore, opening new coal blocks in the state while previously allocated blocks remain non-operational
is inefficient. The fact that the existing mines are not operating at full capacity further compounds the issue.
The focus should shift towards improving the operational efficiency of current mines, optimising resource
extraction, and minimising environmental impacts. Prioritising 100% operational efficiency in existing mines
would reduce the need for additional coal mines and ensure the effective use of existing resources, thereby
mitigating the risk of stranded assets in Odisha’s coal sector.

ii. Coal peaking


Odisha’s coal is largely used for power generation. As per the review of the coal dispatch records of MCL, nearly
99% of the coal produced in the state is dispatched for consumption in the power sector13.

Table 1.15: Sector-wise coal dispatch


Sector Target (MMT) Actual (MMT)
Power 146.2 149.03
CPP and others 29.7 43.7
Cement 0.05 0.12
Colliery consumption 0 0.0006
Total 176 192.8
Source: MCL Annual Report 2022-2023

According to the Ministry of Coal, coal demand is likely to peak between 2030-2035, and consumption by
2035-2040.14 In addition, GoI has committed to meet net zero by 2070.
Independent assessment shows that renewable energy plus battery storage will become cheaper than
coal-based power by 203015. If this happens then coal peak in power sector can happen even before the year
forecasted by MOC. Odisha should evaluate the expansion of its coal sector by considering this information,
otherwise the risk of stranded assets is quite high.

1.9.3 Opportunities for land repurposing


The land is a crucial requirement for industrial development and economic diversification. Repurposing of land
available with coal mines will be essential for diversifying the local economy, developing green energy and green
industries, and creating local employment opportunities. Global studies also suggest that repurposing of mining
land has been a key factor for local employment generation and supporting economic transition16.
At the same time, repurposing of infrastructure developed by coal companies will also be important. In the
event of a just transition, the facilities maintained by these companies can become assets for the use of the
local community. This can also complement the social infrastructure investment that will be necessary for a
just transition.
As discussed earlier, an assessment of land available with operational, closed, and mine to commence
operation (by 2026) shows that over 29,600 ha of land is available with OC and UG mines that are operating
commercially. Besides, more than 4,700 ha of land is currently available with closed mines, which are either
temporarily or permanently closed.

39
In the immediate future, the opportunity lies with repurposing the land available with closed mines, and
those that are going to exhaust their extractable resources or remain economically unviable. Considering this,
collectively, over 11,000 ha of land can be planned for repurposing by 2030.
This land is primarily in Talcher and Jharsuguda blocks. The mines that can be considered for repurposing
include, Samaleswari mine in Jharsuguda block, Chhendipada mine in Chhendipada block and South Balanda
mine in Talcher considering that these are OC mines and has significant amount of land parcels.

Table 1.16: Mines that can be considered for repurposing by 2030


Mine name Location Type of Current operational Land area
District Block mine status (ha)
Talcher Angul Talcher UG Operational 1,140.00
Nandira Angul Talcher UG Operational 370.00
Kulda Sundargarh Hemgir OC Operational 634.20
Samaleswari Jharsuguda Jharsuguda OC Operational 1,334.91
Orient Mine No. 1&2 Jharsuguda Jharsuguda UG Operational 1,857.24
Hirakhand Bundia Incline Jharsuguda Jharsuguda UG Operational 1,095.71
Chhendipada Angul Chhendipada OC Temporarily closed 76.30
Deulbera Angul Talcher UG Temporarily closed 954.10
Handidua Angul Talcher UG Temporarily closed 553.64
South Balanda Angul Talcher OC Permanently closed 1,208.70
Orient Mine No.3 Jharsuguda Jharsuguda UG Temporarily closed 1,421.76
Orient Mine No.4 Jharsuguda Jharsuguda UG Temporarily closed 519.47
Hindegir Rampur colliery Jharsuguda Jharsuguda UG Permanently closed NA
Source: iForest analysis

Repurposing the coal mining land, however, will require a revision in the mine closure plans of various coal
mines in the state. An analysis of the proposed post-closure land use for opencast mines in Odisha shows
that it largely involves plantation activity. Over 63% of the land available with these mines is identified for
plantations and 14% for water body creation. This renders about 77% of land unusable for green energy or green
industry development once mines are closed. Only about 23% of the total land can be categorized as readily
available, including undisturbed areas, green zones, safety zones, or land for public use, such as infrastructure
development, built-up areas, cultivable land, and grassland.
Going ahead if the coal mining land is properly reclaimed and repurposed, it will have enormous value for
economic diversification and local job creation besides the environmental gains. The following types of
repurposing activities can be undertaken after scientific mine land reclamation:
• The disturbed area, primarily including the excavation area and external overburden (OB) dump can be used
as potential land for setting up renewable energy (RE) infrastructure, such as solar PV.
• The undisturbed area, built-up area, etc. can be suitably repurposed for developing green industries, including
green small and medium-scale industries, industrial parks, etc.
• Besides these, horticulture activities, eco-tourism activities engaging local people, and pisciculture activities
in mine voids can create important avenues of sustainable employment.
Repurposing coal mining land for developing green energy infrastructure and creating local employment
opportunities has also been recognised by the Government of India (GoI). In April 2022, the Union Cabinet chaired
by the Prime Minister of India gave a nod to a set of policy guidelines developed by the Ministry of Coal allowing
the development of certain coal and energy infrastructure and social infrastructure in land acquired under the
Coal Bearing Areas. (Acquisition and Development) Act, 1957. The guidelines aim to repurpose the land lying idle
with the coal public sector undertakings (PSUs). This includes land where coal mining is not economically viable

40
or the areas that have been de-coaled and reclaimed. The PSU, which is currently holding the land, can lease it
to other central PSUs, state government agencies/PSUs, and other private entities for certain activities for a
defined period17.
Among the various repurposing activities mentioned in closed mining land, setting up RE projects on the
closed mine land remains a key one. For this, the land may be leased for a maximum period of 35 years.18
Another extremely important policy move has been taken by the Government on land repurposing. In June
2024, the Ministry of Coal proposed revised guidelines for coal mine closure, under which for the first time the
repurposing of mining land has been specified besides reclamation activities. More importantly this has been
emphasised in the context of ‘just transformation’ of the local communities and addressing the social, economic,
and environmental challenges associated with mine closure activities.19

KEY PROVISIONS ON JUST TRANSFORMATION AND LAND


REPURPOSING IN DRAFT GUIDELINES (2024) ON COAL AND LIGNITE
MINE PLANNING AND MINE CLOSURE
The draft guidelines of mine planning and closure of coal and lignite mines promulgated by the Ministry of
Coal in 2024 has for the first time integrated the aspects of just transformation of local communities in
mining areas, and opportunities of repurposing the land.
The guidelines (Para 3.2) note that just transformation is the equitable process of transitioning from
traditional coal mining toward more sustainable and environmentally friendly manners, ensuring that
the environment is protected, the land is restored, and affected workers, communities, and regions are
supported and empowered throughout the transformation. It involves recognising and addressing the
social, economic, and environmental challenges associated with mine closure activities.
It further specifies that the project proponent shall complete all activities related to technical, biological
reclamation and repurposing related to just transformation before issuing the final closure certificate
(Para 3.2.1).
The guidelines also emphasises the repurposing of infrastructure available with mining companies in
coordination with the concerned government entities. It notes that all social amenities and infrastructure
created (like hospitals, schools, community centers etc.) by the coal company should be handed over to the
state government (Para 3.2.2).
Recognising the need of huge skill training in the future, the guidelines also specify that the office and
other buildings of mine may also be utilised or developed as skill development centers or others. Efforts
also need to be made in each progressive closure period of five years to enhance skills, livelihoods, and
living conditions of communities directly or indirectly dependent within the vicinity of the mine. The
project proponent will have to submit a five- yearly report, outlining of the initiatives undertaken to skill
development and sustain the livelihoods of the affected communities (Para 3.2.2).
Source: Ministry of Coal, Government of India. (June 2024). Draft mining plan guidelines for coal and lignite blocks. https://coal.
gov.in/sites/default/files/2024-06/18-06-2024.pdf

1.9.4 Workforce transition


While in Odisha there is no major challenge for workforce transition in the coming years, it will be important
to prepare the workforce in the mining areas for the future green economy, since many of them will require a
skilled workforce. Therefore, a key aspect of workforce transition will be skilling and reskilling.
Reskilling of workers can be done by developing and investing in workforce development/training
programmes, pre-apprenticeship programmes, etc. Similarly, investments in higher education, vocational and
technical education, and new skilling programmes (including, higher-order skills) are required to develop a new
generation of workforce for the green economy.

41
1.9.5 Utilisation of social welfare funds to support just transition
As Odisha plans for a just transition of the state’s coal-dependent regions, it will be important to utilise some
of the social welfare funds to support measures of sustainable livelihoods, skilling and reskilling, and building
resilient social infrastructure. The District Mineral Foundation (DMF) funds and the coal cess, remain the most
important sources of public financing for the state to support localised transition measures. The purpose of
these funds is also aligned with the goal of a clean environment, supporting clean energy, and ensuring public
good and social welfare. Leveraging these funds will be important to support not just immediate socioeconomic
measures, but also long-term sustainable development.
A decadal assessment of potential funds available combining DMF and coal cess shows that over I39,764 crore
can be available from DMF contribution by ongoing and planned mine expansions in the state (not accounting for
allocated coal blocks).
Besides DMF, the coal cess, which is currently subsumed under the GST Compensation Cess (prospectively
until 2026), can be one of the most significant sources of public financing to support just energy transition
measures in the state.20 Being levied at I400 per tonne of coal production (and imports), an analysis of the
compensation cess collected from 2017-18 till 2022-23, shows that the state has paid over I39,500 crores in
coal cess during the period (considering Odisha’s coal production during the same period) 21. Going ahead, the
coal cess if repurposed as just an energy transition cess, can be a very significant resource to support green
investments and jobs in the coal districts.

Table 1.17: Estimated funds from DMF and coal cess


Public funds Estimated contributions (K crore)
2023-30 2031-40 2041-50 2050-60 Post 2060 Total
DMF 11,344 11,777 9,643 5,182 1,818 39,764
Coal cess 1,00,588 1,04,426 85,508 45,948 16,122 3,52,592
Total (DMF + Coal cess) 1,11,932 1,16,203 95,151 51,130 17,940 3,92,356
Source: iFOREST analysis

42
OPPORTUNITIES OF DISTRICT MINERAL FOUNDATION FUNDS
The Government of India (GoI), in March 2015, instituted District Mineral Foundation (DMF) through an
amendment to India’s central mining law, the Mines and Minerals (Development and Regulation) Act (MMDR)
of 1957. As per the provisions of the law (Section 9B), DMF is a non-profit trust, developed in every mining
district of India, with the precise objective to “work for the interest and benefit of persons and areas”
affected by mining related operations’’ (Section 9B MMDR Amendment Act, 2015).
The Pradhan Mantri Khanij Kheshtra Kalyan Yojana (PMKKKY), the flagship Central Government scheme
introduced in 2015, and aligned to the implementation of DMFs also upholds the spirit of DMFs. To optimise
the benefits for mining-affected people and areas, the guidelines specify the need for DMFs to identify
mining-affected people, and delineate the mining-affected areas (directly and indirectly affected). It
also outlines mechanisms of fund use and prioritization of sectors for investments through planning,
transparency, and public accountability, among others.
In essence, the MMDR Amendment Act (2015) and the PMKKKY collectively emphasize on composition,
functioning, planning, and implementation aspects of DMFs in a manner that ensures that DMFs function
as inclusive, effective, and publicly accountable institutions.
The contribution of DMFs comes through payment by mining companies operational within a district.
The mining companies (or individuals) operating within the administrative boundaries of the district pay
DMF an amount equivalent to 30% of the royalty (for leases granted before 2015) and 10% of the royalty for
leases granted after that.
So far the state has received I25,858 crore in DMF from coal mining and other major mineral mining
activities. Out of which, slightly over 23% is from coal mining, and the rest is from non-coal mining. Out of
the total coal-related DMF, over 55% is from Angul district.

Table 1.18: Status of DMF funds accrual and utilisation in coal districts
District Total collected (K) Total spent (K)
Angul 3,412.18 1,798.69
Jharsuguda 1,419.32 1,179.72
Sundargarh* 7,820.3 5,965.53
Total 12,651.8 8,943.94
Source: Ministry of Mines, July 2024; *A major share of Sundargarh’s DMF is from iron ore mining

Going ahead, DMF funds, can be crucial seed money for supporting just transition measures in Angul,
Jharsuguda, and Sundargarh districts. The State Government can provide the necessary direction for
using DMF funds to support just transition-aligned investments in these districts, particularly in blocks
where mines are likely to close in the near future due to resource exhaustion and economic unviability.

43
CHAPTER 2

Oil and Gas


2.1 Oil
India is the third-largest consumer and importer of crude oil in the world, and its refining capacity ranks fourth
globally22. From a just transition perspective, the downstream sector of the oil industry holds a high significance
for India. This includes refining and production of petroleum products, and their marketing and distribution.
The upstream sector, which includes exploration and production of oil, is less significant as India is heavily
reliant on import of crude oil, which contributes more than 85% of the oil demand23. In fact, in the last 10 years,
India’s crude oil production has experienced a negative compound annual growth rate (CAGR) of -2.7%. In 2022-
23, India’s domestic oil production stood at 29.18 million metric tonnes (MMT), while 232.7 MMT was imported in
2022-2324.

2.1.1 Capacity and production of refinery


The Indian refinery industry has made significant strides in recent years with India being the fourth largest
refiner in the world and the second largest in Asia, after China.
There are a total of 23 refineries in the country – 18 in the public sector, three in the private sector, and two in
Joint Venture25 – with a cumulative production capacity of about 254 million metric tonne per annum (MMTPA)26.
Paradip refinery located in Jagatsinghpur district of Odisha was commissioned in 2016 The refinery currently
accounts for 5.6% of the country’s refining capacity27.
The Paradip refinery is designed to process 15 MMTPA crude including high sulphur heavy crudes28. It currently
produces various petroleum products such as gasoline, diesel, kerosene, aviation turbine fuel, Propylene,
Sulphur, and petroleum coke. It also serves as an economic stimulus for industrial development in the region by
way of immediate potential growth of ancillary and auxiliary industries.

44
Table 2.1: Processing at Paradip refinery (2021-22)
Refinery Year of Petroleum refining Crude oil processed Production of
name commencement capacity in 2022-23 (MMT) in 2022-23 petroleum products
(MMT) in 2022-23 (MMT)
IOCL- 2016 In Odisha Share of In Odisha Share of In Share of
PARADIP India’s total India’s Odisha India’s total
(%) total (%) (%)
15 5.97 13.6 5.33 12.27 4.67
Source: Indian Petroleum & Natural Gas Statistics 2021-22, Ministry of Petroleum and Natural Gas

Table 2.2: Year-wise crude oil processed by Paradip


Year Crude Oil processed by IOC- Paradip (MMT)
2015-16 18.17
2016-17 82.30
2017-18 12.73
2018-19 14.61
2019-20 12.92
2020-21 11.73
2021-22 13.21
2022-23 (P*) 13.60
*provisional
Source: Petroleum Planning & Analysis Cell, 2023

2.1.2 Sales of petroleum products


The total annual sales of all petroleum products in Odisha have been increasing at a steady rate for the last 12
years. For the year 2022-23, Mobile Spirit (MS) and High-Speed Diesel (HSD) accounted for over 51% of the total
sales (12.8 MMT).

Table 2.3: Annual industry sales of petroleum products in Odisha


Year Total annual industry Annual industry sales of Annual industry sales of
sales (MMT) MS (MMT) HSD (MMT)
2010-11 3.3 3.2 1.8
2011-12 3.4 3.4 1.8
2012-13 3.4 3.7 1.8
2013-14 3.7 4.1 2.0
2014-15 3.9 4.7 1.9
2015-16 4.5 5.5 2.2
2016-17 5.2 6.1 2.3
2017-18 5.7 7.0 2.5
2018-19 5.9 7.8 2.6
2019-20 6.0 8.3 2.7
2020-21 5.9 7.8 2.5
2021-22 6.2 8.6 2.6
2022-23 6.6 9.9 2.9
Source: Petroleum Planning & Analysis Cell, 2023

45
2.1.3 Marketing and distribution
In the oil industry, major marketing and distribution happens for products such as diesel, petrol, and domestic
fuel. The marketing and distribution segment is significant for a just transition because this is where the most
immediate impacts of the oil transition will be experienced in India29.
The marketing and distribution segment of the oil sector has been evaluated in terms of the impact on retail
outlets. The evaluation shows that the number of retail outlets in Odisha has registered an increase to 2,159
outlets in 2022, compared to 1,230 in 2012 in the state.

Figure 2.1: Trend in increase in retail outlets


2500

2000
No. of outlets

1500

1000

500

0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022*

Source: Petroleum Planning & Analysis Cell, 2024; * provisional

2.1.4 Employment and workforce


The employment in the oil sector has been estimated for the one refinery operating the state. The primary
employment in this sector stems from the Indian Oil Corporation Limited (IOCL) refinery located in Paradip,
which has a refining capacity of 15 MMTPA.
In total, the Paradip refinery provides direct employment to around 8,100 individuals. The number of
permanent employees is estimated at 200 persons per MMTPA of refining capacity, while contract workers are
approximately 1.7 times the number of permanent employees.

Table 2.4: Employment in oil refinery


State District Company Capacity Employees
(MMTPA) Permanent Contract Total
Odisha Paradip IOCL 15 3,000 5,100 8,100
Source: Manpower has been assessed at 200 persons per MMTPA of refining capacity for permanent employees, and the number of
contract employees is estimated to be 1.7 times the total number of permanent employees, based on data from IOCL’s All India worker
statistics.

2.1.5 Just transition issue and opportunities


The key just energy transition issue for India’s oil sector will be greening the refining process by using green
hydrogen in the coming years30.
India’s refinery sector processes almost 250 MMT of crude oil per year requiring about 3 MMT of hydrogen.
This is about 46% of the country’s total hydrogen demand. The majority of this hydrogen is generated on-site.
The production of this hydrogen contributes to about 27 MMT of CO2 emissions currently, which are expected
to rise to 47 MMT by 2050. However, the adoption of green hydrogen can help to neutralize CO2 emissions from
hydrogen production by 205031.

46
For state-run refineries, the Central Government is providing fiscal incentives for greening the sector.
In the 2023 union budget, an outlay of I1300 billion was announced to help such refiners move toward
cleaner energy32.
At Paradip refinery, a significant step has been taken towards renewable energy (RE) adoption with the
installation of 1.87 MW capacity solar panels over the roof of the warehouse. This solar power generation facility
helps reduce the reliance on conventional power sources and promotes the use of clean energy33.
Overall, IOCL has adopted various measures to reduce greenhouse gas emissions by transitioning to cleaner
and RE sources. For this, the company has implemented initiatives such as rainwater harvesting, water,
carbon, and waste footprint mapping, as well as the installation of solar panels and LED lights. Additionally,
sapling plantations have been carried out at pipeline installations to contribute to carbon sequestration and
environmental preservation34. The company has also recently announced to achieve net zero operational
emissions by 2046. The decarbonisation plans encompass both Scope 1 and 2 emissions, with an estimated
budget requirement of more I2.4 lakh crore35.
Besides the use of green hydrogen, the application of carbon capture and storage (CCUS) technology is also
being proposed by international expert agencies, such as the International Energy Agency (IEA)36. The application
of CCUS to refining operations can be an important mechanism to reduce emissions from the oil value chain.
While refineries consist of a variety of CO2 emission sources across different processing units, there are some
units and systems that could be equipped with CCUS units. This includes hydrogen production units using steam
methane reforming, fluid catalytic cracking units, and co-generation systems37.
Concerning workforce transition, key intervention will be necessary in the marketing and distribution
segment. Considering the large-scale low income-dependence in this segment, state and central government
intervention for transition of the workforce, through reskilling, reemployment, and transition support will be
necessary.

2.2 Natural gas


Among the three fossil fuel sectors, the natural gas sector is likely to see the least disruption during the process
of energy transition in the immediate future. Both policymakers and energy experts envision an increased use
of natural gas to meet the local pollution and GHG emission reduction targets. All the net-zero models project
a three to fourfold increase in natural gas demand by 2050. The GoI has also set a target to raise the share of
natural gas in the energy mix to 15% in 2030 from about 6.3% in 2022. Natural gas consumption, therefore, is
projected to increase in the industrial sector, as well as in the power sector.

2.2.1 Capacity and production


Odisha’s natural sector focus on import and regasification through the Dhamra LNG Terminal, located at Dhamra
Port in Bhadrak district. This facility, initially developed with a capacity of 5 million tons per annum (MMTPA) and
with the potential to expand up to 10 MMTPA, is critical in supplying natural gas to eastern Indian states, including
Odisha. The state’s integration into India’s natural gas grid through key pipelines, such as the Jagdishpur-Haldia-
Bokaro-Dhamra pipeline (JHBDPL), further solidifies its role in regional energy supply and distribution38.
The natural gas sector in Odisha plays a pivotal role in supporting the state’s energy transition by providing
a cleaner alternative to traditional fossil fuels like coal, thus contributing to reduced emissions and a more
sustainable energy mix. The state’s key industries—such as steel, aluminum, and fertilizer—are significant
consumers of natural gas, utilising it as a cleaner source of energy for production processes. In addition, natural
gas is used for power generation and as a critical feedstock in chemical industries, showcasing its versatility
and importance in fostering industrial growth.

47
2.2.2 Marketing and distribution
The major distribution segments of the gas sector (including its derivatives and products) include compressed
natural gas (CNG), piped natural gas (PNG), and liquefied petroleum gas (LPG). These cater to various domestic,
commercial, and industrial uses.
In Odisha, as of the latest estimates (June, 2024), there are at least 108 CNG stations in the state which is 2%
of India’s total39. For PNG, there are over 1.2 lakh connections40, which constitutes 1% of India’s total.

Table 2.8: PNG connections


Connection Type No. of PNG Connections Share of India Total (%)
Domestic 1,23,953 1
Commercial 11 0.02
Industrial 0 0
Source: Petroleum Planning & Analysis Cell, 2024

Concerning LPG distributors, as of the latest estimates (April 2024), the state has over 965 distributors, depicting
a triple-fold increase over the past decade (323 in 2013). This accounts for 4% of the LPG distributors in India.

Figure 2.2: Trend in increase in LPG distributors


1200

1000
No. of distributers

800

600

400

200

0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022*
Source: Petroleum Planning & Analysis Cell, 2024; * provisional.

48
2.2.3 Employment and workforce
The employment for the gas sector could only be estimated for LPG distributors in the state. Based on the review
of the letter of intent of oil marketing companies, the total employment in LPG distribution can be estimated to
be about 3,860 (considering two office staff and two loaders/ unloaders who also do delivery).

2.2.4 Just transition issues and opportunities


Presently, the gas sector does not seem to have major transition challenges because of the projected growth in
this sector till 2050. If alternatives like hydrogen and electricity become cheaper than imported LNG, then gas
use will not grow as much as it is projected by various agencies. However, a reduction in natural gas consumption
is immediately necessary for the fertilizer sector, which is the key consumer. Urea fertilizer produced using
natural gas has a high carbon footprint. Overall, in India, an average of 0.714 MMT of CO2 equivalent (CO2e) is
estimated to be emitted for each MMT of urea during the production stage. The just energy transition issue of
the fertilizer section is discussed in detail in the later chapter.
In the marketing and distribution segment, while there is no immediate transition challenge for the PNG
segment, however, the CNG and the LPG distribution segments remain vulnerable to the transition. The LPG
will face challenges with the rise in PNG supply for cooking, especially for households, and also electric cooking
gadgets. A review of the existing PNG network suggests that urban India will move to PNG. The Government is
planning to spend I120,000 crores over the next 10 years to expand the city gas distribution (CGD) network across
the country to cover 407 districts, and about 70% of the population.

49
50
SECTION II

ELECTRICITY
SECTOR
Chapter 3: COAL-BASED
THERMAL POWER

51
CHAPTER 3

Coal-based Thermal Power


3.1 Overview
Odisha has over 21 GW of installed coal-based thermal power capacity, which is about 10% of India’s total. Out of
this, over 55% (11.6 GW) is captive power capacity and the rest 45% (9.4 GW) is the utility-scale capacity.1
As per the latest information from the Central Electricity Authority on the state’s utility-scale installed
capacity, it is predominantly reliant on coal with a 77% share (9,540 MW) of the state’s total installed capacity of
about 12,382 MW. This is followed by hydropower. The installed capacity from renewable energy sources (RES)
is less than 6%.2

Figure 3.1: Fuel types in the electricity sector


6%
Renewables
77%
17% Coal-based
Hydro

Source: iFOREST analysis based on CEA data of August, 2024

Considering consumption, Odisha accounts for about 2.7% of the country’s electricity consumption. In
2023-24, the total electricity consumption of the state was 36,453 GWh. Electricity consumption is projected
to increase steadily in the coming years reaching 50,952 GWh in 2031-32 owing to the state’s industrial and
domestic demand.3

Figure 3.2: Projected electricity consumption


60000

50000

40000
GWh

30000

20000

10000

0
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32

Source: iFOREST analysis based on CEA data of September 2024

Analysis of electricity consumption among various sectors shows that high voltage (HV) industrial power
accounts for 39% (11,746.07 GWh) of the total energy sold. Domestic consumers represent the second-largest

52
segment, consuming 25% (7,713.94 GWh) of the total electricity. Low voltage (LV) industrial power follows with a
12% (3,754.2 GWh) share, indicating considerable energy use by smaller industrial units.4
The state’s Economic Survey report (2024) also indicates that the industrial sector and growing urbanisation
will remain the key drivers of rising electricity demand in the state. Owing to such push factors, demand in the
state has been growing steadily over the last 10 years. Overall electricity demand has increased from 26,482
GWh in 2014-15 to over 42,631 GWh in 2022-23.5
Simultaneously the per capita consumption of electricity has also increased steadily over the past 10 years.6
The current per capita electricity consumption of the state is about 2,264 kWh, which is 1.8 times the India
average of 1,255 kWh.7

Figure 3.3: Trend in utility demand


45000
40000
35000
30000
25000
GWh

20000
15000
10000
5000
0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Source: iFOREST analysis based on CEA data of September 2024

Figure 3.4: Per capita electricity consumption


2500

2000

1500
kWh

1000

500

0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Source: iFOREST analysis based on CEA data of September 2024

Considering the growing demand for electricity in the state, with increased industrialisation and urbanisation
in the future, a green energy transition becomes an absolute necessity. This requires an overall evaluation of
the current status of the coal-based thermal power sector in the state (including both utility-scale and captive)
to understand how a just energy transition can be planned and implemented in the coming decades.

53
3.2 Captive power plants
Odisha is one of the top states in terms of installed captive power capacity, accounting for 16% of India’s total. Of
the total 12.5 GW of captive power capacity, 11.7 GW is coal-based, which is about 93% of the total captive capacity.

Table 3.1: Installed capacity of captive power plants


Fuel type Installed capacity (MW) Share of total state capacity (%)
Steam (coal) 11,655 93.1
Diesel 352 2.8
Gas 399 3.2
Solar 84 0.7
Biomass 28 0.2
Total 12,517 100
Source: All India Electricity Statistics, 2024

Captive power plants (CPPs) in Odisha play a crucial role across various industries, with the aluminium
sector leading in installed capacity at nearly 6 GW. This represents about 66% of the total captive capacity in
the aluminium industry nationwide. The iron and steel sector follows, with around 4.8 GW of captive capacity,
contributing 30% of the sector’s total captive capacity in India. Other key sectors relying on CPPs include non-
ferrous metals, fertilizers, petroleum and mineral oil, paper, mining and quarrying, and food processing.8
Currently, coal dominates captive power generation in the state, accounting for 99% of the energy mix, based
on 2022-23 industry data. Renewable energy sources like solar and biomass contribute only 0.6% and 0.35%,
respectively.
Given the scale of operations and the heavy reliance on coal, transitioning CPPs toward green energy will be
critical for Odisha’s energy transition efforts and for advancing industrial decarbonisation in the state.

Table 3.2: Industry-wise captive capacity


Type of Industry Installed capacity (MW)
Aluminium 6,808
Automobiles 3
Cement 129
Chemical 1
Collieries 4
Fertiliser 173
Heavy Engineering 2
Iron and Steel 4,156
Mineral Oil and Petroleum 380
Mining and Quarrying 8
Miscellaneous 734
Non-industry 20
Paper 96
Plastic 2
Total 12,517
Source: All India Electricity Statistics, 2024

54
3.3 Utility-scale thermal power plants
Odisha has over 9.4 GW of coal-based utility-scale capacity.9 Due to the state’s substantial coal reserves, most of
its thermal power plants (TPP) are pit-head which provide affordable electricity. The TPPs are thus concentrated
in Jharsuguda, Angul, and Sundargarh districts.

Table 3.3: Operational utility-scale TPPs


District Block Company name Plant name Unit No. Installed capacity (MW)
Jharsuguda Lakhanpur OPGCL IB Valley TPS 1 210
2 210
3 660
4 660
IBPIL Utkal TPP 1 350
Jharsuguda Vedanta Limited Vedanta TPP 2 600
Dhenkanal Odapada GMR Energy Kamalanga TPS 1 350
Limited 2 350
3 350
Angul Banarpal JITPL Derang TPP 1 600
2 600
Talcher NTPC Talcher STPS 1 500
2 500
3 500
4 500
5 500
6 500
Sundargarh Hemgir NTPC Darlipali STPS 1 800
2 800
Total 19 9,540
Source: Central Electricity Authority, list of thermal power plants in India, 2024

In addition to operational TPPs, the state further plans for a capacity addition of 3,720 MW from two ultra-
supercritical TPPs. The Talcher TPPS-III is expected to commence operation from the end of 2027 (September
to December), and the Talabira TPP in 2028 (May to November).10

Table 3.4: Under construction and likely to be commissioned TPPs


District Block Company name Name of TPP Unit No. Capacity (MW)
Jharsuguda Rampur NLC India Ltd. Talabira TPP 1 800
2 800
3 800
Angul Talcher NTPC Talcher TPPS-III 1 660
2 660
Total 5 3,720
Source: Central Electricity Authority, broad status report of under-construction thermal power projects, July, 2024

Overall, considering the operational utility-scale TPPs, those to start operation by 2027-28, and the existing
coal-based captive capacity, the total capacity of coal-based TPPs in the state by 2027-28 will be about 25 GW.

55
Table 3.5: Overall coal-based capacity by 2027-28
Production type Capacity (MW)
Utility 13,260
Captive 11,655
Total 24,915
Source: iFOREST analysis based on Central Electricity Authority data of July 2024 and OREDA, 2024

3.4 Age assessment of power plants


The age assessment of coal-based power plants in the state has been considered for both utility-scale units,
as well as the CPPs. For CPPs, the age assessment has been undertaken for units that are 100 MW capacity or
above, as it is significant from the perspective of emission reduction.
The assessment shows that the thermal power fleet in the state is relatively young when considering utility-
scale plants. About 1.4 GW of the installed utility-scale capacity will reach 35 years in the next 10 years (by 2035).
These include two units (200*2=400 MW) of the IB Valley Thermal Power Station (TPS) in Jharsuguda district
which is the oldest TPP of Odisha Power Generation Corporation Limited (OPGCL) commissioned in mid
mid-1990s, and two units (500*2=1,000 MW) of Talcher power station operated by NTPC Limited.

Table 3.6: Age assessment of utility-scale TPPs


TPP reaching Company Plant name Unit Location Installed Year in which
the age of 35 name No. capacity reaching the age of
years (MW) 35 years
2025- 2030 OPGCL IB Valley TPS 1 Jharsuguda 210 2029
2 Jharsuguda 210 2030
NTPC Talcher STPS 1 Angul 500 2030
Total by 2030 3 920
2031- 2040 NTPC Talcher STPS 2 Angul 500 2031
3 Angul 500 2038
4 Angul 500 2038
5 Angul 500 2039
6 Angul 500 2040
Total by 2040 5 2,500
2041-2050 Sterlite Energy Sterlite TPP 1 Jharsuguda 600 2045
Limited 2 Jharsuguda 600 2045
GMR Energy Kamalanga TPS 1 Dhenkanal 350 2048
Limited 2 Dhenkanal 350 2048
3 Dhenkanal 350 2049
JITPL Derang TPP 1 Angul 600 2049
2 Angul 600 2050
Total by 2050 7 3,450
Beyond 2050 IBPIL Utkal TPP (Ind Barath) 1 Jharsuguda 350 2051
OPGCL IB Valley TPS 3 Jharsuguda 660 2054
4 Jharsuguda 660 2054
NTPC Darlipali STPS 1 Sundargarh 800 2054
2 Sundargarh 800 2056
Total beyond 5 3,270
2050
Source: iFOREST analysis

The assessment of CPPs as per data that could be obtained for 100 MW and above capacity (10 out of 17 plants)
shows that except for a few, most of the plants started operating in the early 2000s. The feedback from officials
of the State Pollution Control Board (SPCB) also corroborates with the analysis. As per feedback, the captive
fleet in the state is not very old and mostly started in the early to mid-2000s.

56
Table 3.7: Age assessment of selected CPPs (as per available data)
Company District 2022-23 Total Date of commissioning
Capacity (MW)
Vedanta Limited Jharsuguda 3,015 1,215 MW* in 2008
National Aluminium Company Limited (NALCO) Angul 1,294.1 1968
Jindal Steel & Power Ltd. (JSPL) Angul 853.5 2011
Bhushan Power & Steel Ltd. (Acquired by JSW Sambalpur 506 2005
Steel Ltd.)
Angul Energy Ltd (Acquired by TATA Steel) Dhenkanal 465 300 MW in 2010; 165MW in
2016
Rourkela Steel Plant Sundargarh 326.5 250 MW** - 2022
Indian Metal & Ferro Alloys Ltd. Cuttack 200 50 MW in 1989; 30 MW in
2011; 120 MW in 2013
Bhubaneswar Power Pvt. Ltd. (Acquired by Cuttack 135 2016
TATA Steel)
Indian Farmers Fertiliser Cooperative Limited Jagatsinghpur 110 2000
(IFFCO )
Facor Power Ltd. (Acquired by Vedanta) Bhadrak 100 50 MW in 2011; 50 in MW-2013
Source: iFOREST analysis based on EC letters and plant level documents; * Information obtained for 1215 MW of active capacity as per
company information in the public domain. ** Data as obtained for PP-II Expansion of 250 MW capacity

3.5 Spatial distribution


The seven coal-based utility-scale TPPs in Odisha are all located in the state’s coal-producing and adjoining
districts, such as Jharsuguda, Angul, and adjoining Dhenkanal, and Sundargarh. Considering the distribution
of the 79 CPPs, while these are located across the state, about 69% of the capacity is concentrated in Angul,
Jharsuguda, and Sambalpur districts.
Overall, about 88% of the coal-based power capacity (combining utility-scale and captive plants) is
concentrated in five districts- Angul, Dhenkanal, Jharsuguda, Sundargarh, and Sambalpur, which are the hubs
of coal mining and industrial operations. Among these, Angul has the maximum installed capacity, about 6.7 GW.
Jharsuguda is a close second with about 5.7 GW installed capacity.

Map 3.1: District-wise distribution of coal-based power plants


Sundargarh Kendujhar Balasore
00 = Captive power plants 13 (598.2) 8 (187) 1 (33.5)
00 = Utility scale plants 1 (1,600)
Capacity (MW) in paranthesis
Jharsuguda
8 (3,170.5) Angul
3 (2,690) Bargarh Sambalpur 3 (2,518)
1 (30) 9 (2,128.5) 2 (4,200)
Boudh
1 (5) Cuttack Bhadrak
6 (445.4) 2 (129.4)
O D I S H A
Dhenkanal
Kalahandi 6 (491)
1 (90)
1 (1,050)
Nabarangpur Ganjam
1 (3) 1 (3.8) Jajpur
6 (656.4)
Rayagada
5 (158) Jagatsinghpur
4 (591)
Koraput
3 (114.7)
Source: iFOREST analysis

57
3.6 Land availability
There is a considerable amount of land available with the utility-scale and captive TPPs in Odisha. As per plant-
related data available for utility-scale TPPs, about 4,192 ha of land is available with various plants in four districts.
Of this, the maximum share of land is concentrated in Talcher block of Angul district (36%) and Lakhanpur block
of Jharsuguda district (about 24%). Considering industries, the maximum amount of land is available with NTPC.
The largest share of the land is available with the Talcher STPS.
Besides, an estimated 5,904 ha of land is available with the CPPs operating in various districts.11 About 69%
of this land is concentrated in just three districts, Angul, Jharsuguda, and Sambalpur, the biggest industrial
districts of the state.

Table 3.8: Land availability with utility-scale TPPs


District Block Company name Plant name Total land (ha)
Angul Talcher NTPC Talcher STPS 1,502
Banarpal JITPL Derang TPP 384
Dhenkanal Odapada GMR Energy Limited Kamalanga TPS 425
Jharsuguda Lakhanpur OPGCL IB Valley TPS 755
IBPIL Utkal TPP (IND Bharath) 240
Jharsuguda Vedanta Limited Vedanta TPP 210
Sundargarh Hemgir NTPC Darlipali STPS 676
Total 4,192
Source: Land area as per latest available environmental clearance letters and EIA reports of TPPs

Table 3.9: Land available with CPPs


District name Total number of CPPs Estimated land (ha)
Angul 3 1,309.4
Balasore 1 17.4
Bargarh 1 15.6
Bhadrak 2 67.3
Boudh 1 2.6
Cuttack 6 231.6
Dhenkanal 6 255.3
Ganjam 1 2.0
Jagatsinghpur 4 307.3
Jajpur 6 341.3
Jharsuguda 8 1,648.7
Kalahandi 1 46.8
Kendujhar 8 97.2
Koraput 3 59.6
Nabarangpur 1 1.6
Rayagada 5 82.1
Sambalpur 9 1,106.8
Sundargarh 13 311.1
Total 79 5,903.7
Source: iFOREST analysis based on a factor of 1.3 acres or 0.52 ha per MW

58
3.7 Employment and workforce
The employment in TPPs in the state (both utility-scale and captive) has been calculated as per data provided by
some of the companies, and as per the manpower requirement curve provided by CEA for permanent employees
for various capacities of TPPs with varied numbers of units (Norms for manpower requirement in thermal power
sector, 2022).12 For contractual workers, employment factors have been developed based on the data of some
of the TPPs in Odisha.
Considering this, the total formal workforce associated with utility-scale TPPs is over 13,247. Among them,
the number of permanent workers is 3,312. The number of contractual workers can be estimated to be three
times the number of permanent workers as per estimates obtained from NTPC plants.
The total number of permanent workers with CPPs is estimated to be over 4,700. For contractual workers,
going by the same estimates as utility-scale TPPs, the number of workers is estimated to be about 14,284
workers. Therefore, combining permanent and contractual workers, the CPPs employ about 19,000 workers.
Overall, it can be estimated that the coal-based power plants employ about 32,300 people in the state.

Table 3.10: Total employment in TPPs


Type of plant No of permanent workers No of contractual Total number of
workers formal workers
Utility-scale TPP 3,312 9,935 13,247
Captive TPP 4,762 14,284 19,046
Total 8,074 24,219 32,293
Source: iFOREST analysis

Table 3.11: District-wise employment in coal-based power plants


District Manpower in utility-scale plants Manpower in CPPs Total formal
Permanent Contractual Total Permanent Contractual Total workers in the
formal formal district
Angul 1,136 3,408 4,544 992 2,975 3,967 8,511
Balasore 15 45 60 60
Bargarh 16 47 62 62
Bhadrak 65 195 261 261
Boudh 3 8 10 10
Cuttack 255 766 1,021 1,021
Dhenkanal 415 1,245 1,660 210 629 838 2,498
Ganjam 8 24 32 32
Jagatsinghpur 252 757 1,010 1,010
Jajpur 429 1,288 1,718 1,718
Jharsuguda 961 2,882 3,843 1,124 3,373 4,497 8,339
Kalahandi 41 122 163 163
Keonjhar 109 327 436 436
Koraput 43 127 170 170
Nabarangpur 2 6 8 8
Rayagada 60 184 244 244
Sambalpur 872 2,617 3,490 3,490
Sundargarh 800 2,400 3,200 265 795 1,060 4,260
Total 3,312 9,935 13,247 4,761 14,285 19,047 32,293
Source: iFOREST analysis based on company data, manpower requirement norms of Central Electricity Authority, 2024, and district-
wise CPP data as obtained from GRIDCO, 2024

59
3.8 Environmental performance and operational
efficiency
The environmental performance and operational effectiveness of TPPs has been assessed by considering fly
ash generation and utilisation, installation of Flue Gas Desulfurization (FGD) equipment, and the plant load factor
(PLF). Together, these factors have significant implications for mitigating GHG emissions from TPPs.

3.8.1 Fly ash


Generation and effective use of fly ash are major concerns for coal-based TPPs and fly ash management is a
major issue of environmental compliance by the TPPs. In December 2021, the Ministry of Environment, Forests
and Climate Change (MoEFCC) issued a notification on fly ash (revising the earlier notifications), that prohibited
fly ash dumping and made it mandatory to use it in an eco-friendly manner, such as in the manufacture of
bricks and cement and construction of roads and flyover embankment.13 Following the notification the TPPs are
increasing their fly ash utilisation for various activities like brick making, cement, and road construction.
In Odisha, the fly ash generation and management information for utility-scale TPPs of the CEA shows
that except for Vedanta and Kamalanga TPS, the fly ash utilisation does not follow the 100% utilisation
recommendation. In fact, in IB Valley TPS and Darlipali STPS is it extremely low.14

Table 3.12: Fly ash generation and utilisation


Plant name Fly ash generation (MMT) Fly ash utilization (MMT) Proportion of fly ash used (%)
IB Valley TPS 0.5278 0.1384 26.22
Vedanta TPP 1.4488 1.6641 114.86
Kamalanga TPS 1.0866 1.2591 115.88
Derang TPP 0.9867 0.7589 76.91
Utkal TPP NA NA NA
Talcher STPS 3.2324 1.6723 51.74
Darlipali STPS 1.8316 0.3379 18.45
Source: Central Electricity Authority, Report on fly ash generation at coal and lignite thermal power plants and its use in the country,
2022-23.
NA- Not available

3.8.2 Plant load factor and FGD installation status


The plant load factor (PLF) is an important parameter to understand the operational efficiency of the TPPs. An
analysis of the PLF of various TPPs shows that all of the utility-scale plants have a PLF of over 76%, suggesting
that the plants are operating at optimal capacity.15
Considering the Flue Gas Desulfurization (FGD) installation status, The Environment (Protection) Amendment
Rules, 2015 mandates all TPPs to integrate units as a means to mitigate sulfur dioxide (SO2) emissions.
As per the FGD status reviewed for various TPPs it shows that all units of both the NTPC plants in Angul16 and
Sundargarh17 districts have installed FGD. For the OPGCL-operated plants, the older units of the IB Valley TPS in
Jharsuguda have not installed FGD. However, the newer units 3 and 4 have installed FGD.18 The other plants have
not installed FGDs as per available data at the time of the evaluation.

60
Table 3.13: Plant-wise PLF and FGD installation status
Company name Plant name Unit No. Installed Age (as of PLF (%) FGD status
capacity (MW) Dec 2023)
OPGCL IB Valley TPS 1 210 29 76.9 Absent
2 210 28 Absent
3 660 4 Present
4 660 4 Present
NTPC Talcher STPS 1 500 28 88.4 Present
2 500 27 Present
3 500 20 Present
4 500 20 Present
5 500 19 Present
6 500 18 Present
Sterlite Energy Sterlite TPP 1 600 13 Not Absent
Limited 2 600 13 available Absent
GMR Energy Kamalanga TPS 1 350 10 77 Absent
Limited 2 350 10 Absent
3 350 9 Absent
JITPL Derang TPP 1 600 9 Absent
2 600 8 Absent
IBPIL Utkal TPP (IND Barath) 1 350 7 Absent
NTPC Darlipali STPS 1 800 4 80.8 Present
2 800 2 Present
Source: Central Electricity Authority, 2023 and plant-level documents

61
3.9 GHG emissions
Coal-based TPPs are the single-largest source of GHG emissions in the state accounting for about 52% of total
emissions. Emissions from TPPs have grown at a CAGR of 6.3% since 2012-13. As per the latest estimates, the
emissions stand at over 149.7 MMT CO2e.
This dominance reflects the state’s dependence on coal for energy generation, which aligns with national
trends but poses considerable challenges to climate action and energy transition efforts.

Figure 3.5: GHG emissions from TPPs


160

140

120

100
MMT CO2e

80

60

40

20

0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23

Source: iForest analysis

3.10 Just transition issues and opportunities


The transition towards a low-carbon economy presents significant challenges and opportunities for Odisha’s
coal-based thermal power plants. Given their critical role in the state’s energy supply and employment, a planned
and inclusive transition is essential to mitigate adverse socio-economic impacts while fostering sustainable
development.

3.10.1 Energy transition strategy


To reduce GHG emissions, Odisha needs to plan a gradual phase-down of coal-based power generation over the
coming years. However, given the state’s energy demand, this transition requires a phased approach that aligns
the reduction of coal-based power with the expansion of RE.
A strategic phase-down schedule for TPPs has been developed based primarily on the plants’ age, assuming
they will be decommissioned at the end of their average design life of 35 years. Other factors, such as operational
efficiency, were not considered, as the state’s TPPs generally maintain decent efficiency, as discussed
earlier. Considering this, a prospective phase-down schedule in four phases is outlined for the utility-scale TPPs.
By 2030, three units, two units of OPGCL, and one unit of NTPC can be retired. The retirement of these 3 units
will lead to a reduction in capacity of 920 MW. Between 2030 and 2040 five units with a cumulative capacity of
2,500 MW can be retired.
Between 2040 and 2050, there will be the maximum retirement of the TPP units. A total of seven units with
a cumulative capacity of 3,450 MW can be retired. Post 2050 remaining five units with a cumulative capacity of
3,270 MW can be retired.

62
Overall, a phased and strategic approach to retiring TPPs in the state is essential for meeting both energy
demand and achieving a just energy transition to meet the climate goals. The proposed phase-down schedule,
based on the age and design life of the plants, outlines four distinct phases spread across the decades up to
2050 and beyond. As the analysis shows, given the state’s relatively young fleet, there is no immediate challenge
of closures in the coming years. Like the coal mining sector, the coal-based TPPs also have at least the next 10
years to plan for a transition so that there are no challenges to energy security and energy access. By gradually
decommissioning units, starting with the oldest, the state can reduce its dependency on coal while ensuring a
stable energy supply through the concurrent phase-in of RE sources.

3.10.2 Transition of CPPs


Odisha has a substantial number of CPPs, primarily fueled by coal. These plants help industries meet their
energy demands while reducing reliance on the state’s grid. However, the heavy dependence on fossil fuels for
power generation in these plants contributes significantly to carbon emissions. With the state’s ambition and
potential for industrial growth, the number of captive plants will also increase. Therefore, it is important to plan
a transition of the CPPs to green energy sources.
One of the most significant opportunities for energy transition in captive power plants is the integration of RE
sources, such as solar, wind, and biomass. Odisha has considerable potential for solar energy (discussed below),
which must be harnessed for the transition of CPPs.
On the policy side, the state government has developed incentives under the state’s RE Policy of 2022 . Some
of the key ones include:
• Fast-track approvals for captive RE projects.
• Exemption of fifty (50) paisa per unit on Electricity Duty to captive consumers on consumption of energy from
RE projects set up inside the state during the policy period.
• Exemption of twenty (20) paisa per unit on STU charges to captive consumers on consumption of energy from
RE projects commissioned in the state during the Policy period for 15 years. In case a project is commissioned
before March 31, 2026, the exemption shall be extended for five more years.
• Exemption of 25% of wheeling charges to captive consumers on consumption of energy from RE projects
commissioned in the state during the Policy period for fifteen (15) years.
Commensurate to the government policies, it will be important for the industries, including small and medium
enterprises to invest in captive RE. Overall, the CPP units must accelerate RE integration to align with the
Renewable Purchase Obligation (RPO) targets (43.33% overall RPO target by 2030) to support decarbonisation
efforts.

3.10.3 Phasing-in RE
The development of RE infrastructure and augmenting RE investments will be crucial for Odisha’s energy
transition. The state currently has an installed capacity of about 628 MW. However, the state’s potential for RE
development is massive.

Table 3.14: Installed RE capacity


Category Installed capacity (MW)
Solar 453.17
Small hydro 115.63
Biogas power 59.22
Total 628.02
Source: Central Electricity Authority General Review Report, 2024

63
As per estimates of the Ministry of New and Renewable Energy (MNRE), the potential for solar energy
development in the state is about 25.8 GW. Besides, there is also significant potential for wind energy.
However, the potential of RE is far higher than even the MNRE estimates. As per an RE potential assessment
undertaken by iFOREST, considering the modest use of wasteland and reservoirs in the state, the solar potential
of the state is about 170 GW. In some districts, such as Koraput, Malkangiri, Keonjhar, and even the state’s top
coal district Angul, the solar potential is comparable to leading RE states like Karnataka and Gujarat.
The majority of the assessed solar potential is for ground-mounted solar projects. The potential is maximum
in districts, such as Angul, Bolangir, Keonjhar, Koraput, and Malkangiri due to the higher concentration of large
land patches with low socio-ecological conflict and substantially higher insolation.
For floating solar projects, large capacity projects of 1.5-3 GW can be set up at the Rengali, Tikilipada,
Upper Indravati, Nabrangpur, Jalaput and Hirakund reservoirs. For solar rooftops, the potential is high in urban
agglomerations. Bhubaneshwar block has the highest potential, followed by other urban blocks of Baleshwar
and Jatani and the industrial blocks of Kujanga, Kuanrmunda, and Jharsuguda.

Table 3.15: RE potential


Category MNRE estimates (MW) iFOREST estimates (MW)
Solar 25,780 170,000
Biomass 246 3,400
Wind 8,346 (120m) 86 high-potential sites were identified with an average CUF of 22%-
29% at 150 m hub height across 16 districts. Need detailed ground-level
assessment
Source: iFOREST analysis

The state government is taking proactive policy measures to support green energy development. The state
has developed a progressive RE Policy 2022, that aims to add about 11 GW of RE capacity by 2030.19

3.10.4 Repurposing retired TPPs for green energy development


Repurposing TPPs for green energy and green industry is a strategic and sustainable approach to transition
away from traditional fossil fuel-based (coal-based) energy generation. Repurposing involves decommissioning
the existing assets and utilising the existing land and infrastructure to support the development of cleaner and
more environmentally friendly technologies.
Odisha has six TPP units with a cumulative capacity of 0.46 GW that were retired between 2021 and 2022 for
techno-economic reasons. Besides, about 1.4 GW capacity combining four TPP units can be retired by
2035. These include two units (200*2=400 MW) of the IB Valley TPS and two units (500*2=1,000 MW) of
Talcher STPS. Repurposing the retired units into green energy and green industry infrastructure, such as
for RE, battery energy storage systems (BSES), green hydrogen plants, etc. provides significant opportunities
for supporting green energy and industry development, creating jobs, and strengthening state-level
climate action.

3.10.5 Transition of the workforce


The phasing down of coal-based power plants, and particularly the phasing in of RE in Odisha will create
demand for reskilling the existing workforce and developing future workforce.
Odisha is embarking on an ambitious plan to transition from coal-based energy generation to a RE-
driven power system with a target of achieving 10 GW of installed RE capacity by 2030. This shift not only
aligns with the state’s broader decarbonisation goals but also presents significant opportunities for
socio-economic development, including job creation and local enterprise growth.20

64
However, the transition also poses challenges, particularly in terms of workforce readiness and skills
availability. Given that a substantial segment of the existing workforce is currently employed in coal-based
industries, there is an urgent need to undertake systematic reskilling and capacity-building initiatives to ensure
that the transition is both socially just and economically beneficial.
The collaboration of the State Government and industry will be essential to develop the workforce for roles
in RE system. Skilling will be required for the design, installation, and maintenance of RE systems, smart grid
technologies, energy storage, green hydrogen use, transportation, and operation, among others. A skilled
workforce will also be required for decommissioning and repurposing of retired TPP units and old TPPs. This
will involve skilling the workforce for impact evaluation, risk assessment and management, waste disposal and
management, remediation, etc.
The government and the industry should undertake targeted measures to facilitate the inclusion of local
communities, particularly those in coal-dependent regions, in the emerging RE value chain through targeted
training, capacity building, and entrepreneurship development programs. The deployment of these measures
should be aligned with the state’s target of 11 GW of RE capacity by 2030.

65
66
SECTION III

FACTORIES
Chapter 4: IRON AND STEEL

Chapter 5: ALUMINIUM

Chapter 6: CEMENT

67
Factories Overview
According to the Annual Survey of Industries 2021-22, Odisha has 3,207 factories of which 2,697 were operational
during the reference year 2021-22. The factories collectively employ about 3.2 lakhs (0.32 million) people.1
Despite a modest share of 1.2% of the total number of factories in India, the state ranks third in terms of
fixed capital investment, accounting for 8.38% of the national total. This signifies the presence of large, capital-
intensive industrial units in the state such as steel, aluminum, and cement.2
To evaluate the impact of the energy transition on industries, a multi-criterion-based analysis has been
considered. These include:
a) Energy intensity, which is defined as energy costs as a percentage of total input costs. Based on energy
intensity, three impact categories have been determined:
i. Low impact: <5%
ii. Moderate impact: 5% - 10%
iii. High impact: >10%
b) Sectors that will go through technological disruptions due to energy and environmental transition. From an
energy transition perspective, this will include the manufacturing of electric motors, generators, batteries,
wiring and wiring devices, lighting equipment, domestic appliances, etc. From an environmental transition
perspective, this will include the plastic industry, waste treatment and disposal, material recovery, etc.
Based on such criteria, the factories that will face high impact, moderate impact, and low impact due to the
energy transition have been determined.

ENERGY TRANSITION IMPACT ON FACTORIES


The energy transition will impact various fossil fuel-dependent factories in Odisha differentially in the
coming years. While for some the impact will be low, for many the impact will be very high requiring
urgent intervention, through policy support, investments and innovation. Based on a multi-criteria-based
impact evaluation, factories falling under the various impacted categories—high, moderate, and low— are
outlined below.
High impact: Sectors including iron and steel, coke ovens, refined petroleum products, electric motors,
generators, batteries, cement, bricks, refractories, automobile and automobile components, basic
chemicals, fertilizer, and nitrogen compounds, among others, will be highly impacted. Also, those involved
in waste treatment, disposal, and material recovery will be highly impacted.
Overall, the high-impact segment includes over 40% of total factories in the state. These factories are
highly significant for the economy as they account for 90.9% of the economic output and 92.3 % of the
GVA from all factories. The segment also accounts for 95.7% of total energy use in factories. Considering
the workforce, they account for over 78% of the total factory employment and engage 80% of all factory
workers. This segment also has a very high share of women workers, which is about 71% of all women
workers (total women workers in factories is 16,403) engaged in various factories.
Medium impact: Sectors including fabricated metals, pulp and paper, and pharmaceuticals, among others,
will be moderately impacted due to the direct use of fossil fuels like coal and natural gas for process heat
and electricity.
Overall, the medium-impact segment includes about 36% of the total factories in the state. It accounts
for 4.7% of the total economic output and 5.4% of the GVA from all factories. Considering the workforce,
the segment accounts for about 11.5 % of the total employment and 10.7% of the total workers employed
in factories.

68
Box continued

Low impact: Sectors including, food processing, wood-processing and product industries, tobacco,
computer and electronics, consumer goods, types of machinery, etc., will have low impact from the
transition.
Approximately 24% of the factories will face low impact from the energy transition as these have very
low energy consumption and are responsible for about 0.8% of the total energy usage. It accounts for 4.4
% of the economic output and 2.3 % of the GVA from all factories. Considering the workforce, the segment
accounts for 10.2 % of the total employment and 9.3 % of the total workers employed in factories.

Characteristics of industries likely to be impacted by the energy transition


Characteristics All factories High impact Moderate impact Low impact
Value Share of Value Share of Value Share of
total (%) total (%) total (%)
1. Number of factories 3,207 1,297 40.4 1,149 35.8 761 23.7
a. Number of factories in 2,697 1,057 39.2 941 34.9 699 25.9
operation
2. Total output (I Lakh) 4,68,79,707 4,26,12,003 90.9 22,03,707 4.7 20,63,997 4.4
3. Gross Value Added (GVA) 1,00,09,291 9,236,293 92.3 5,41,582 5.4 2,31,416 2.3
(I Lakh)
4. Number of persons 3,20,649 2,51,105 78.3 36,882 11.5 32,662 10.2
engaged
5. Total number of workers 2,70,401 2,16,370 80 28,797 10.7 25,234 9.3
a. Percentage of workers 58.4 61.7 47.8 42.2
employed through
contractors (%)

b. Number of directly 16,403 11,701 71.3 589 3.6 4,113 25.1


employed women workers

6. Total energy use (as per 35,05,724 33,55,888 95.7 1,20,600 3.4 29,236 0.8
cost in I Lakh)

Source: Analysis based on Annual Survey of Industries data, 2021-22, Government of India

69
CHAPTER 4

Iron and Steel


4.1 Overview
India is the second largest producer of crude steel with a capacity to produce 179.5 MMT of crude steel per
year. The country also has the largest production capacity of sponge iron in the world which stood at 55 MMT
in 2023 -24.3
In 2023-24, the country produced over 144.3 MMT of crude steel, marking an increase from the 127.2 MMT
produced in 2022-23. The private sector dominating the steel industry accounted for 83% share of the total
crude steel production. Overall, the steel sector has grown steadily over the past years (since COVID), from 103.5
MMT in 2020-21 to 144.3 MMT in 2023-24.4
In terms of consumption, India is the world’s second-largest consumer of finished steel after China. The
domestic consumption of finished steel stood at 119.17 MMT in 2022-23.5
The steel sector is poised for expansion in the coming years supported by government policies, and growing
demand in the domestic and international markets for construction. The National Steel Policy 2017 envisages
achieving up to 300 MMT of production capacity by 2030-31, while making the Indian steel industry technologically
advanced and globally competitive.6 The policy also seeks to increase the domestic per capita consumption
from the current 97.7 kg per year (which is one-third of the global average) to 158 kg per year by 2030.7
Odisha produces about half of the country’s iron ore and is the largest producer of crude steel in India.8 As
per the latest information from the Department of Steel and Mines, the state has a total crude steel production
capacity of 33.5 MMTPA, which is about 21% of the country’s total The state is the largest producer of stainless
steel in the country and has more than 20% of the steelmaking capacity.9 Odisha’s capacity of crude steel
production is expected to be 100 MMTPA by 2030.10 Major producers like TATA Steel, Jindal Stainless Steel
(JSL), and Jindal Steel and Power Limited (JSPL) who have a robust presence in the state are going to lead the
state’s growth target. Besides, players like Arcelor Mittal Nippon Steel India are tying up with the government
to establish new plants. In 2021 the company and the Odisha government signed an MoU to establish a 12 MMT
integrated steel plant with an investment worth I50,000 crore.11

4.2 Production and spatial distribution


Odisha has a large number of iron and steel units (including units producing sponge iron, crude steel, and
finished steel products). As noted, the state has 52 iron and steel plants with a crude steel production capacity
of 33.5 MMTPA.12
The crude steel-making units are distributed across eight districts in the state. Sundargarh has the highest
crude steel production capacity of over 7.4 MMTPA, with Rourkela, Odisha’s steel capital being situated in the
district. Overall, Sundargarh and adjoining Sambalpur and Jharsuguda districts constitute the largest crude
steel-producing region with 24 plants and a cumulative production capacity of over 12.5 MMTPA. The other key
steel production clusters include Angul and Dhenkanal districts, with about 12.25 MMTPA collective production
capacity.

70
Map 4.1: Distribution of crude steel-producing plants
Sundargarh Kendujhar
00 = No. of units 13 12
00 = Capacity (MMTPA) 7.4 1.51
Jharsuguda
6 Dhenkanal
1.24 6
6.25
Sambalpur
Jajpur
5
Cuttack 6
3.6
2 7.07
O D I S H A 0.45
Angul Jagatsinghpur
1 1
6 -

Source: Department of Steel and Mines, Government of Odisha, 2024; For Jagatsinghpur capacity not shared.

Besides crude steel units, there are 83 sponge iron units. These units are spread across various districts in
Odisha with the largest concentration being in Sundargarh and Kendujhar, the two largest iron ore-producing
districts of the state.

ODISHA’S SPONGE IRON INDUSTRY


Sponge iron, also known as direct reduced iron (DRI), is a cost-effective way to produce steel. Sponge iron
production in Odisha is a significant industrial activity, with numerous units across nine districts. There
are 83 units with a total production capacity of 13,387.7 MMTPA. Sundargarh district, a major producer of
iron ore and also coal has nearly 50% of the units. The sponge iron segment is estimated to employ over
22,700 workers.
The process of producing sponge iron is energy-intensive, with coal being the major fuel. The quality of
coal used in these plants also poses a significant challenge to the environment as it is low-grade (E or F
grade) with high ash content and low fixed carbon. This low-grade quality contributes to both operational
efficiency and local environmental pollution. Sponge iron plants emit large quantities of pollutants,
including oxides of sulfur and carbon, unburnt carbon, and silica particles.

Table 4.1: District-wise sponge iron-making units


Districts No. of units Production capacity (MMTPA) Estimated manpower
Angul 3 2.0 3,315
Cuttack 3 0.4 621
Dhenkanal 3 1.7 2,899
Jajpur 3 0.3 561
Jagasinghpur Not specified Not specified
Jharsuguda 6 0.5 859
Kendujhar 14 1.9 3,205
Sambalpur 9 3.3 5,632
Sunderghar 41 3.3 5,525
Khordha 1 0.1 143
Total 83 13.4 22,759
Source: Joint Plant Committee, Indian Iron and Steel Database-2022-23; Workers estimated as employment factor derived from EC
letters of sponge iron units; Bureau of Energy Efficiency, Ministry of Power, Government of India. Manual on energy conservation measures
in sponge iron manufacturing cluster Orissa. 2011. https://sameeeksha.org/pdf/clusterprofile/ODISHA_SPONGE_IRON_CLUSTER.pdf

71
IRON ORE MINING IN ODISHA
Odisha is India’s top iron ore producer accounting for over 50% of India’s total iron ore production. In 2023-
24 the state produced 169 MMT of iron ore.
There are 67 iron ore mines operating in the state with a production capacity of 297 MMTPA. The mines
are spread across four districts, including Kendujhar, Sundargarh, Mayurbhanj, and Jajpur. However, 94%
of mines are concentrated in Kendujhar and Sundargarh, with both these districts accounting for 97% of
the production capacity.
Overall, the mines cover an area of 22,124 ha in the state. Kendujhar district with the largest share of
mines has about 13,968 ha of land under iron ore mines.
There is significant employment dependence on the iron ore mines in the state. Applying an employment
factor approach based on employment estimates in iron ore mines by the Indian Bureau of Mines, it can be
estimated that over 31,800 workers are formally employed by these mines.

Table 4.2: Iron ore mines


District No. of mines Production capacity (MMTPA) Lease area (ha)
Kendujhar 34 175.4 13,968
Sundargarh 29 113.5 6589.1
Mayurbhanj 3 2.3 549.1
Jajpur 1 6 1018.31
Total 67 297.2 22,124
Source: Department of Steel and Mines, Government of Odisha, 2024; Indian Bureau of Mines. (2023). Indian Mineral Yearbook
2022. https://ibm.gov.in/writereaddata/files/17125794946613e3a6b3a5dIron_ore_2022.pdf

4.3 Employment and workforce


The iron and steel plants (crude steel producing plants) employs a large number of people formally and informally.
As per information provided by the Odisha State Pollution Control Board (OSPCB), more than 1.5 lakh workers are
engaged in the steel plants in the state as direct and indirect workers. The highest number of workers are in
Jajpur (22.3%), Sambalpur (16.7%), Sundargarh (16.4%), Dhenkanal (16.8%) and Angul (14.7%) districts, which in
total have 87% of total iron and steel sector workers of Odisha. Besides, as noted earlier, the sponge iron units
are estimated to employ over 22,700 workers.

Table 4.3: District-wise workforce in crude steel-making units


District Direct workers Indirect workers Total workforce
Angul 4,024 18,450 22,474
Cuttack 734 1,841 2,575
Dhenkanal 5,497 20,202 25,699
Jagasinghpur 436 1,611 2,047
Jajpur 9,707 24,317 34,024
Jharsuguda 2,840 4,328 7,168
Kendujhar 3,697 4,398 8,095
Sambalpur 8,219 17,351 25,570
Sundargarh 12,990 12,025 25,015
Total 48,144 1,04,523 1,52,667
Source: As per data provided by OSPCB, 2024

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4.4 Production process and technology
The Indian steel industry is primarily reliant on coal-based blast furnaces. Consequently, the emission intensity
of steel produced in India is 2.54 tonnes CO2 /tonne crude steel (tCO2 /TCS), which is significantly higher than
the global average of 1.91.13
In Odisha, for the production of crude steel blast furnace and electric furnaces are used. An analysis of furnaces
by various crude steel-producing units shows that most of the units (47) use electric furnaces accounting for a
total production capacity of 17.1 MMTPA. The remaining five units using blast furnace account for 16.4 MMTPA
production capacity, which is about half of the total capacity.

4.5 GHG emissions


The iron and steel industry is a major contributor to GHG emissions in India.14 As of 2023, the sector accounts for
approximately 5% of the country’s total GHG emissions. This is significant given that India is the second-largest
steel producer in the world, with production and demand expected to rise rapidly in the coming years.15
The GHG emissions from the steel sector in Odisha have rapidly grown over the last decade. Emissions have
increased at a CAGR of 11.2% since 2012-13. As per the latest estimates for 2022-23 (undertaken by iFOREST),
the GHG emissions from the sector stand at 105.7 MMT CO2e.

Figure 4.1: Emissions from the steel industry


120

100

80
MMT CO2e

60

40

20

0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Source: iFOREST analysis

4.6 Just transition issues and opportunities


The Indian steel sector is a critical contributor to the nation’s economic growth and infrastructure development.
However, it is also one of the highest-emitting industries. To align with India’s national climate targets and the
global ambition of net-zero emissions, the steel sector must undergo a fundamental transformation.16 Odisha
being the country’s top steel producer will have a key role in the just energy transition of the sector.

i. Greening production process and material use


The Ministry of Steel’s report (August 2024) identifies six key transition levers for the steel sector. These
include enhancing energy efficiency, material efficiency, RE use, process transition, green hydrogen adoption,
and deployment of carbon capture, utilization, and storage (CCUS) technologies. Each of these strategies
offers unique opportunities to significantly reduce the carbon footprint of the steel sector while ensuring its
competitiveness and growth.17

73
For example, energy efficiency improvements can significantly reduce the emissions intensity of steel
production while also cutting production costs. The Perform, Achieve, and Trade (PAT) scheme by the Bureau of
Energy Efficiency (BEE) has been effective, with the steel sector achieving total energy savings of 6.137 Mtoe by
Cycle V (2019-22), surpassing the target of 4.575 Mtoe.
However, the energy intensity of Indian steel production still remains high. The average specific energy
consumption (SEC) for the blast furnace-basic oxygen furnace (BF-BOF) route is 6.0-6.5 Gcal/tcs, as compared
to the global average is 4.5-5.0 Gcal/tcs. The application of some of the best available technologies (BAT) can
help in improving energy efficiency of the steel sector and also reduce its CO2 emissions. Some of the key
technologies that can be used at integrated plants are outlined in Annexure 1.
Similarly, RE penetration in the steel industry will be a crucial decarbonisation strategy. As per the Ministry of
Steel, the share of RE in the steel sector’s electricity consumption was 7.2% in FY 2021-22. This can significantly
improve with RE penetration targets set at 43.33% by 2030 by the Ministry of Power. The steel sector is expected
to achieve up to 35% RE penetration by incorporating renewable sources in captive power generation and
compliance with the Renewable Purchase Obligation (RPO).
Besides RE penetration, the use of green hydrogen by the sector will also be important. Green hydrogen can
substitute coal use in blast furnaces and gas-based shaft furnaces, reducing CO2 emissions significantly.
Besides shifting to green energy in the coming years improvements in material use and efficiency will also
be important. The key measures will include beneficiation, pelletisation, and enhanced scrap utilization. These
strategies can enhance resource efficiency and reduce overall emissions.
Overall, Odisha with its significant share of India’s steel production holds a pivotal position in achieving India’s
industrial decarbonisation and energy transition goals. The state has an ambitious plan for developing green
hydrogen/green ammonia hubs and developing a dedicated policy. One of the initiatives the state can take is
to ensure that the future steel plants are hydrogen-ready. The steel sector’s growth trajectory also needs to
be aligned with the decarbonisation vision for the sector set forth by the Ministry of Steel, including enhancing
energy efficiency, material efficiency, RE use, process transition, and deployment of carbon capture, utilization,
and storage (CCUS) technologies.

74
ii. Policy support for green steel
The GoI is adopting major policy reforms to support the green growth of the steel industry. The National Green
Hydrogen Mission promulgated by the Ministry of New and Renewable Energy (MNRE) in January 2023, aims
to boost the use of green hydrogen by various industrial sectors, including the steel industry. Further, the
Union Minister of Steel and Civil Aviation has approved 13 Task Forces for defining the roadmap for Green Steel.
Besides, these, the Government had also earlier promulgated policies to improve environmental performance
and reduce emissions from the steel sector. These include the Steel Scrap Recycling Policy, 2019, which
enhances the availability of domestically generated scrap to reduce the consumption of coal in steel making,
and the PAT scheme under the National Mission for Enhanced Energy Efficiency, which incentivises the steel
industry to reduce energy consumption.18

iii. Industry initiatives


India’s steel industry is actively exploring and implementing various initiatives to promote green steel production,
aligned with the country’s broader decarbonization and climate commitments. Several steel companies, such
as Tata Steel19 and JSW Steel20, are evaluating the use of green hydrogen for steelmaking. Tata Steel has also
pledged to explore CCUS technologies to capture and reuse CO2 emissions from steel plants.21
The Steel Authority of India Limited (SAIL) and other major players have also initiated pilot projects and
collaborations to develop and scale up green steel technologies, often partnering with international agencies
and technology providers.22

iv. Workforce transition


A key issue for the green transition of the iron and steel sector will be a just transition of the workforce. The large
formal and informal dependence on the sector will require the development of policies and plans to ensure the
workforce transition.
A primary focus of the workforce transition will be skilling and reskilling, given the technological changes in
the sector for decarbonisation. For this, policies by the government as well as the enterprises will be required.
Out of the 13 Task Forces set up for transitioning to green steel, one of them is specifically focused on skill
development. The Skill Development Task Force will identify and outline an approach for “skilling, upskilling and
re-skilling of the manpower of the steel industry for ensuring the just transition”. One of the key emphasis is the
need to create and empower educational institutions to meet evolving skill demands.
For the private sector, enterprise-level transition planning will be necessary to ensure a just transition of the
workforce.
Overall, for a successful workforce transition in Odisha’s steel sector, it is essential for the State Government,
training institutions, and industry leaders to collaborate effectively. Key institutions like the Biju Patnaik
National Steel Institute and the World Skill Centre, alongside industry stakeholders, can play a pivotal role in
establishing a robust skilling and workforce development ecosystem. This coordinated approach will equip the
local workforce with the necessary skills to meet the demands of the emerging green steel sector, fostering job
opportunities and ensuring Odisha remains competitive in a low-carbon economy.

75
CHAPTER 5

Aluminium
5.1 Overview
India is the second largest aluminium producer in the world accounting for about 7% of the total production in
2023-24.23 The production of aluminium in the country was recorded at 4.16 MMT.24 The rich bauxite reserves
offer a significant competitive advantage for aluminium production in the country.
India’s aluminium industry is dominated by four major primary producers, viz., National Aluminium Company
Limited (NALCO), Hindalco Industries Ltd., Bharat Aluminium Company Ltd. (BALCO), and Vedanta Aluminium
Ltd. These companies have a strong presence and are now expanding further. Key sectors expected to drive
aluminium consumption in the country include automotive, power, electronics, railways, aerospace and defence,
construction, solar energy, and aluminium packaging.25
Odisha is the largest aluminium-producing state in India, accounting for 54% of the country’s aluminium
smelting capacity. The state also has almost 75% of India’s total bauxite reserves which has supported the growth
of the industry in the state.26 Major industry players such as NALCO, Hindalco, and Vedanta have aluminium
refineries and smelters in Odisha.

5.2 Production and spatial distribution


Odisha has three alumina refineries and four aluminium smelting plants. The three refineries have a combined
processing capacity of about 5.8 MMTPA. These refineries are located in rural districts of the state, including
Koraput, Rayagada, and Kalahandi.
The five aluminium smelters, with a combined production capacity of about 2.8 MMTPA are primarily
concentrated in the industrial districts of Angul, Jharsuguda, and Sambalpur. The NALCO integrated Bauxite-
Alumina-Aluminium- Power Complex is one of the largest in the country.27

Map 5.1: Capacity and distribution of alumina refineries

00 = No. of units
00 = Capacity (MMTPA)

O D I S H A
Kalahandi
1
2

Rayagada
Koraput
1
1 1.5
2.3

Source: Indian Mineral Yearbook, 2022

76
Map 5.2: Capacity and distribution of aluminium smelters

00 = No. of units Jharsuguda


00 = Capacity (MMTPA) 2
0.58
Sambalpur
2
1.75

O D I S H A

Angul
1
0.46

Source: Indian Mineral Yearbook, 2022

BAUXITE MINING IN ODISHA


Odisha’s bauxite reserves are some of the richest in the country, enabling the state to produce a substantial
portion of India’s total bauxite output, which is used for refining alumina and further producing aluminum.
The state is the largest producer of bauxite in India producing about 17 MMT of bauxite in 2023-24. Bauxite
is mined extensively in districts like Koraput, Kalahandi, and Rayagada.
Overall, there are five mines in Odisha with a total production capacity of 21.6 MMTPA. The mines cover
an area of 3,849 ha in the state. Koraput district with the largest share of mines has about 2,272 ha of land
under bauxite ore mines.
The bauxite mines are an important source of employment in districts where the mines are located.
Applying an employment factor approach based on employment estimates in bauxite mines by the Indian
Bureau of Mines, it can be estimated that over 4,830 workers are formally employed by these mines.

Table 5.1: Bauxite mines


District No. of mines Production capacity (MMTPA) Lease area (ha)
Koraput 3 12.98 2,271.6
Sundargarh 1 0.13 188.5
Rayagada 1 8.5 1388.7
Total 5 21.61 3,848.8
Source: Department of Steel and Mines, Government of Odisha, 2024; Source: Indian Bureau of Mines. (2023). Indian Mineral
Yearbook 2022. https://ibm.gov.in/writereaddata/files/170987945265eab09cd2f82Bauxite_2022.pdf

77
5.3 Employment and workforce
The aluminium smelters in Odisha employs about 15,398 workers as per official data. This includes both
permanent and contractual workers.28 The total employment numbers could be much higher owing to various
informal employments in the downstream and ancillary industries in aluminium like conductors, extrusions,
castings, and raw materials manufacturing.
While no employment data was shared for alumina refineries, however, from the environmental clearance
letters of the companies operating in the state (such as Hindalco Industries Ltd.)29 and by applying an
employment factor approach, it can be estimated that the refineries in Odisha collectively employ about 4,300
workers (combining permanent and contractual).30
Therefore, overall, it can be estimated that the aluminium industry in Odisha employs about 19,698 workers
formally.

Table 5.2: Employment in aluminium smelters


Smelter District Permanent workers Contractual Total workforce
workers
Aditya Smelter Sambalpur 1,314 3,559 4,873
Hirakud Smelter 1,480 2,652 4,132
Nalco Smelter Angul 2,107 4,286 6,393
Vedanta Smelter Jharsuguda 1,233 2,467 3,700
Total workforce 4,901 10,497 15,398
Source: Data as provided by SPCB, 2024

78
5.4 Just transition issues and opportunities
Aluminium production is an energy-intensive process and requires a constant supply of electricity.31 Any effort
to produce low-carbon aluminum has to directly address the supply of electricity required for the smelting
process, in which aluminum is extracted from its oxide, alumina. About 80% of primary aluminum GHG emissions
are generated from smelting.32 In Odisha, the GHG emissions from the aluminium sector have increased at a
CARG of 10% from 2012-13 to 2022-23. As per the latest estimates for 2022-23 (undertaken by iFOREST), the
GHG emissions from the sector stand at 4.5 MMT CO2e.
The following are some of the key opportunities for ensuring a just energy transition of the aluminium sector
in India.

i. Use of RE and other technologies


As per global best practices, the following can be considered for decarbonising the sector. These include direct
electrification using RE, using green hydrogen, and using CCUS.33
As most of the primary aluminum GHG emissions come from the electricity used in smelting, a direct way to
reduce these emissions is to source electricity from low-carbon or RE sources such as hydroelectric, solar, or
wind power.34
Enhancing energy efficiency in both alumina refining and aluminium smelting processes will also be
important. This includes adopting advanced technologies and practices that minimise energy consumption,
which currently accounts for approximately 80% of total emissions in aluminium production. Implementing
energy-efficient technologies can significantly reduce the carbon footprint of the industry.35
Addressing these factors can help decarbonise the aluminum industry and contribute to the production of
low-carbon aluminum, which is becoming increasingly important given the growing demand for sustainable
materials in sectors like automotive, construction, and packaging.

ii. Industry initiatives


The industry players are also taking the initiative to use RE sources in production. For example, in 2022, Vedanta
Ltd. announced long-term sourcing of 380 MW of RE for the companies aluminium smelters. Of this, 180 MW will
be supplied to the smelter at Jharsuguda. This will be carried out through a Power Delivery Agreement (PDA)
between Vedanta Aluminium Ltd. and Special Purpose Vehicles – affiliates of Sterlite Power Technologies Pvt.
Ltd. (SPTPL), a company engaged in the business of supplying renewable power (hybrid) with solar, wind and
storage solutions.36

iii. Workforce transition


A just energy transition for the aluminium sector should also include plans to support workers and communities
that may be affected by the shift to low-carbon production methods. The primary measure will involve reskilling
and upskilling the workforce to equip them for changing technologies and processes and emerging roles in the
green economy.

79
CHAPTER 6

Cement
6.1 Overview
The cement industry in India is the second largest in the world with an annual production capacity of about 600
MMT, which is about 8% of the global capacity. In 2023-24 the country produced over 426 MMT of cement37.
The cement industry in India is set to experience robust growth in the coming years. Cement demand is
expected to increase significantly driven by a surge in infrastructure projects, urban development, and industrial
capital expenditure. This demand is projected to reach between 550 and 600 MMT by 202538. On the supply side,
the industry is witnessing significant capacity additions. Between FY 2025 and FY 2026, around 63-70 MMT of
capacity is expected to be added39. While the cement industry in India is primarily concentrated in the Southern
and Northern states, the eastern and southern regions are expected to lead this expansion in the coming years.40

6.2 Production and spatial distribution


There are 20 cement plants in Odisha, including integrated units, grinding units, and clinker units. Among these,
three are integrated plants, 15 are grinding units and two are clinker units.

Table 6.1: Number and capacity of cement plants


Type of Unit Number of units Total consented capacity (MMTPA)
Integrated unit 3 11.7
Grinding unit 15 23.12
Clinker unit 2 5.4
Source: Odisha State Pollution Control Board, 2024

A district-wise assessment of the cement-producing units shows that Sundargarh has the highest number
of units followed by Cuttack and Jajpur. In terms of type of cement, Portland Cement is the most commonly
produced cement in Odisha.41

Map 6.1: District-wise distribution of cement plants

00 = Integrated plant Jharsuguda Sundargarh


00 = Grinding unit 1 (4) 1 (7.6)
00 = Clinker unit 4 (0.14)
Capacity (MMTPA) in 2 (5.4)
Bargarh
paranthesis
1 (3.56) Jajpur
4 (6.9)
O D I S H A
Cuttack
6 (12.08)

Koraput
1 (0.54)

Source: Odisha State Pollution Control Board, 2024

80
LIMESTONE MINING IN ODISHA
Limestone mining plays a critical role in Odisha’s economy, serving as a key resource for industries such as
cement and construction. Odisha has six limestone mines, with a total production capacity of 17.5 MMTPA.
The mines cover an area of 2,604 ha in the state. Sundargarh district with the largest share of mines has
about 1,895 ha of land under limestone ore mines.
Concerning employment, applying an employment factor approach based on employment estimates
in limestone mines by the Indian Bureau of Mines, it can be estimated that over 865 workers are formally
employed by these mines.
The limestone mined from these regions supports a growing industrial base in the state, with particular
demand coming from the cement and steel sectors. The quality of the limestone deposits in Odisha is
suitable for large-scale industrial use, which has fueled consistent production levels.

Table 6.2: Limestone mines


District No. of mines Production capacity (MMTPA) Lease area (ha)
Bargarh 1 1.7 428.91
Koraput 1 0.35 280.77
Sundargarh 4 15.43 1,894.55
Total 6 17.48 2,604.23
Source: Indian Bureau of Mines. (2023). Indian Mineral Yearbook 2022. https://ibm.gov.in/writereaddata/
files/17125769676613d9c707156Limestone_2022.pdf

6.3 Employment and workforce


The employment in the cement sector has been estimated based on the employment factor approach. The
estimated employment in cement factories in Odisha is over 6,100 formal workers. The number of informal
workers couldn’t be estimated, but they are likely to be of the same magnitude as formal workers.

Table 6.3: Employment in cement plants


District Integrated plant Grinding unit Clinker units Total
Bargarh 875 - 875
Cuttack - 1,208 1,208
Jajpur - 690 690
Jharsuguda - 400 400
Koraput 74 - 74
Sundargarh 1,505 14 1,350 2,869
Total 2,454 2,312 1,350 6,116
Source: iFOREST analysis
*The employment factor derived based on data available in EIA reports is 350 workers per MMTPA for integrated units 250 workers per
MMTPA for clinker unit and 100 workers per MMTPA for grinding units were considered for calculation.

81
6.4 Just transition issues and opportunities
India’s residential building stock is projected to grow nearly 3.4 times over the next decades, from 15.47 billion
m2 in 2017 to 52.5 billion m2 by 2047. At the same time, the commercial building stock is predicted to grow by
nearly 7.5 times, from 0.9 billion m2 in 2017 to 6.8 billion m2 by 2047. Reliability of primary construction materials,
such as cement and steel, will be essential to meet this demand42.
For India to meet its net zero target and to reduce the emission intensity of the country’s GDP, for which the
building and construction sectors are significant contributors, the energy transition of the cement industry is
essential. Reduction of emissions from the cement industry can be achieved by a combination of approaches,
including improving energy efficiency, reducing the proportion of clinker in cement, using non-conventional or
alternative fuels, and adopting innovative technologies as per their market readiness. Additionally, measures
need to be adopted for a transition of the workforce aligned with the technological shift in the sector.

i. Material use
Reducing the clinker content of cement will be important to reducing the process emissions in the sector. The
ratio of clinker to cement is a determining factor for the emission intensity of the sector. While the percentage
depends on regional standards of the amount of cement that must be integrated into concrete products to meet
the required mechanical and durability properties for different end-use applications, portland cement, which is
the most commonly used cement for construction purposes, typically contains more than 90% clinker, with the
remainder being gypsum and fine limestone.43 Since process emissions related to clinker production account
for about 90% of the emissions related to cement production, a high proportion of clinker in cement results in
high CO2 emissions during the production process44.
To decarbonise the industry, clinkers can be substituted with alternative materials, such as fly ash, metal
slag, or calcined clay. The use of limestone instead of clinker is also being considered as a viable option.
Limestone-containing cement typically has a reduced water demand, which results in better workability for
concrete45. Besides, there are considerations for the use of Supplementary Cementitious Materials (SCM), such
as geopolymer/alkali activated cement, calcium sulfo-aluminate (CSA) cement, magnesia binder, celitement,
etc., that will help reduce the use of clinker for cement production46. Clinker demand can also be reduced
through innovations in construction, design, and material mixes and developing low- binder cement and reusable
concrete modules.

ii. Using non-conventional fuels


The cement industry currently relies heavily on coal-based energy. In recent years, the Indian cement industry
has started using alternative fuels to reduce emissions. While the Thermal Substitution Rate (TSR), which refers
to the percentage of alternative fuel used to replace fossil fuels, of the Indian cement industry, on average,
remains at about 4% (in 2010, it was 0.6%), the industry aims to achieve 25% TSR by 2025 and 30% by 2030.47

iii. Alternative technological opportunities


Technological opportunities alongside changes in fuel sources and alternative materials are being explored for
the cement sector. Some of the main technological opportunities identified include carbon capture, utilisation,
and storage (CCUS) and oxy-fuel combustion technology. However, these technologies currently remain at the
demonstration level.48

iv. Workforce transition


The energy transition of the cement sector will involve a transition of material use, fuel use, and production
processes. Therefore, a workforce transition will primarily involve reskilling and upskilling workers along the
value chain. For Odisha, it will also be important to develop the future workforce for the cement industry
considering investment considerations by big players of the cement industry in the Eastern states.49

82
v. Policy support
The cement industry lacks a comprehensive decarbonisation strategy and framework to ensure a just energy
transition of the sector. The current policy and regulatory instruments are targeted toward improving the
sector’s energy efficiency. One of the most important ones is the Perform Achieve and Trade (PAT) scheme,
a flagship Bureau of Energy Efficiency program under the National Mission for Enhanced Energy Efficiency
(NMEEE). The scheme is a market-based mechanism, focussed primarily on enhancing the energy efficiency
of large energy-intensive sectors, including cement, through accelerated adoption of efficient and low-carbon
technologies50. Besides the PAT schemes, the Carbon Credit Trading Scheme, notified by the union Government
in June 2023, can also be instrumental in the “reduction or removal or avoidance” of GHG emissions by some
hard-to-abate and emission-intensive industrial sectors, like cement51.

vi. Private sector initiatives


The cement industry’s energy transition is highly dependent on the engagement and initiatives of private sector
players. Leading companies such as JSW Cement, Dalmia Cement, and Ramco Cements are taking significant
steps to support the sector’s green transformation through investments in technology, innovation, and
sustainable practices. These companies are already producing green cements and have committed to reducing
their carbon footprint
For example, Dalmia Cement stands out with its ambitious goal to become carbon-negative by 2040. It is also
setting up the world’s largest carbon capture facility in the cement sector, which demonstrates the company’s
leadership in adopting cutting-edge technology to address climate challenges52.
Overall, a just energy transition of the cement industry will involve the industry’s leadership, support of
government instruments and policies, engagement of concerned agencies, such as for skilling and workforce
development, and informed engagement of various stakeholders along the value chain.
Overall, it will be important for Odisha to reduce the industrial production process-related emissions to reduce
the state’s overall emission intensity of its economy. As per estimates, given large-scale industrial activities, the
Industrial Processes and Product Use (IPPU) contributes significantly to the overall GHG emissions in the state,
with a share of 4.3% of the total emissions . The emissions from IPPU have increased at a CAGR of 9.7% in the
last decade in the state and currently stand at about 12.5 MMT CO2e.Therefore, developing a comprehensive
industrial decarbonisation pathway in the coming years is crucial for the state.

83
84
SECTION IV

BUILDING AND
CONSTRUCTION
Chapter 7: CONSTRUCTION
SECTOR

85
CHAPTER 7

Construction Sector
7.1 Overview
The building sector is growing rapidly in India due to the rising demand for housing, commercial spaces, and
infrastructure. The housing sales, for example, are estimated to rise by 30% in 2023 as compared to the previous
year and reach a record of 4.74 lakh units. Considering the current rate of urbanisation and various government
initiatives such as Make in India, Housing for All, and Smart Cities, the demand for major building materials is
expected to grow substantially in the coming decades.1
The manufacturing of building and construction materials, such as cement, steel, aluminium, are resource
and energy-intensive process. The foundation of construction in buildings, particularly in urban and peri-urban
areas relies on reinforced concrete and steel frames. Around 60 million tonnes of cement and 14 million tonnes
of steel were used for urban construction in India in 20202. The production of these is energy and material-
intensive (as discussed in the earlier section) and contributes to embodied emission of the sector.
Overall, buildings currently account for over 40% of the country’s total energy consumption, increasing at an
annual rate of 8% (including embodied plus operational). In addition to its high energy demand, the building and
construction sector contributes 32% to India’s total GHG emissions (with embodied emissions making up 40%
and operational emissions accounting for 60%).3
If traditional building practices continue, buildings could be responsible for more than 70% of India’s emissions
by 20504. Thus, transitioning this sector towards energy efficiency and sustainability is crucial for achieving
India’s net-zero targets and broader climate goals.

7.2 Construction sector in Odisha


The construction sector is an important component of Odisha’s economy contributing 6.9% of the State GSVA
and 16% of the industrial GSVA in 2023-24.5 The sector is also a significant employment generator. As of 2022-
23 estimates, 17% of the total workforce in the state is engaged in the construction. This is considerably higher
than the national average of 13%.6
The construction sector in the state is further expected to grow in the coming years due to demographic and
spatial changes from urbanisation, inter-state and intra-state migration, and the expansion of peri-urban areas.
Between 2001 and 2011, the urban population in Odisha increased by 26.8%, which is double the national growth
rate, reaching 70 lakh people. As per stakeholder feedback, migration into urban areas has also increased as a
result of employment opportunities and the expansion of industries, especially in cities such as Bhubaneswar,
Cuttack, and Rourkela. Additionally, intra-state migration, particularly from rural to urban and peri-urban areas,
is largely driven by economic activities around mining and industrial hubs concentrated in regions like Angul,
Jharsuguda, and Sundargarh.
The rate of urbanisation is projected to grow even more. By 2031, the projected urban population is likely to
be 98.5 lakhs – motre than 40% than 2011 population.

86
Table 7.1: Population and urban share in India and Odisha
Year Odisha India
Population (in lakh no.) Urban Population (in lakh no.) Urban (%)
(percent)
Rural Urban Total Rural Urban Total
1951 140.5 5.9 146.4 0 2,986.4 624.4 3,610.8 17.3
1961 164.4 11.1 175.5 0.1 3,603.0 789.4 4,392.4 18
1971 201.0 18.5 219.5 0.1 4,390.5 1,091.1 5,481.6 19.9
1981 232.6 31.1 263.7 0.1 5,238.7 1,594.6 6,833.3 23.3
1991 274.6 42.4 317.0 0.1 6,288.6 2,175.7 8,464.3 25.7
2001 31.9 54.2 86.1 0.6 7,426.2 2,861.2 10,287.4 27.8
2011 349.7 69.8 419.5 0.2 8,334.6 3,767.3 12,101.9 31.1
2021* 373.1 84.9 458.0 0.2 8,950.4 4,721.4 13,671.8 34.5
2031* 384.7 98.5 483.2 0.2 9,239.1 5,577.5 14,816.6 37.6
Source: Adopted from Census of India from 1951 to 2011; Projected population, Ministry of Housing and Family Welfare. GoI

The growing population is putting significant pressure on urban infrastructure, creating a higher demand for
residential and commercial buildings. The resulting expansion of the construction sector not only addresses
this demand but also presents an opportunity to integrate energy-efficient and sustainable practices into new
developments.
Considering the push factors of urbanisation and growing demands for residential and commercial spaces,
and other infrastructure, the energy transition of the sector remains a crucial component of the energy transition
strategy of the state. Also considering the high employment dependence on the sector, the transition needs to
be just and inclusive.

GREEN BUILDINGS IN ODISHA


In Odisha, the development of green buildings is gaining momentum, which include both government and
private office buildings. As per available data, there are 156 certified green buildings in the state. This,
however, makes up a small percentage of the total built environment in the state. It is estimated that less
than 1% of Odisha’s total building stock meets green building standards. This highlights a significant gap
between existing non-green buildings and the urgent need for green infrastructure in the state.

Table 7.2: List of various green-certified buildings


Type of certification No. of buildings
GRIHA Certified 47
LEEDs Certified 13
IGBC Certified 96
Total green-certified buildings 156
Source: Projects, Green Rating for Integrated Habitat Assesment (2024); Odisha, Leadership in Energy and Environmental Design
(2024); Indian Green Building Council (2024)

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7.3 Employment and workforce
The building and construction sector is one of the largest employment generators in Odisha, providing livelihoods
for millions of people. The industrial sector in Odisha employed 53.3 lakh workers in 2022-23 as per the periodic
labour force survey (PLFS), which was around 26% of the total workforce in the state. The construction sector
constitutes about 66% of the industrial workforce7. A significant proportion of the workers are informal workers.
Overall, a district-wise distribution shows that 14 districts have at least one lakh registered construction
workers. About 63% of construction workers are in industrial and urbanised districts, such as Cuttack, Khordha,
and Sundargarh, among others.

Table 7.3: Districts with over one lakh registered construction workers
District Total
Cuttack 2,55,315
Khorda 2,40,405
Sundargarh 1,76,613
Balasore 1,63,222
Bargarh 1,63,135
Kendrapara 1,58,972
Bhadrak 1,48,275
Jajpur 1,41,252
Kendujhar 1,22,107
Mayurbhanj 1,17,862
Subarnapur 1,14,210
Nuapada 1,10,961
Ganjam 1,09,112
Kandhamal 1,00,084
Source: Odisha Building and Other Construction Workers’ Welfare Board, n.d.

7.4 Just transition issues and opportunities


The building and construction sector is a significant contributor to global greenhouse gas emissions, primarily
driven by energy use in construction processes, embodied carbon in building materials, and operational energy
consumption. A sustainable transition in this sector requires a multi-faceted approach that addresses material
efficiency, and energy efficiency in buildings.

i. Optimisation of material and resource use


The use of construction materials—such as cement, steel, glass, and aluminum—accounts for a substantial
portion of the sector’s carbon footprint. Material efficiency involves the optimisation of resource use in the
design, construction, and operation of buildings. This can be achieved through:
• Design for reduced material use: Implementing lightweight structural designs, optimising building forms,
and using efficient framing techniques can reduce the volume of materials used in construction8.
• Use of low-carbon materials: Promoting the use of alternative materials such as recycled aggregates, low-
carbon cement, fly ash, blast furnace slag, and timber can significantly reduce the embodied carbon of
buildings9.

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• Circular-economy approaches: Strategies like reusing building components, recycling construction waste,
and designing for deconstruction support a circular economy, minimising waste and extending the lifecycle
of materials10.

ii. Decarbonization of cement, steel, and aluminium sectors


Achieving the energy transition of the building and construction sector requires a holistic approach that
integrates decarbonisation strategies of the cement, steel, and aluminum sectors. While each of these sectors
will have sector-specific approaches for decarbonisation (as discussed in the previous section), the following
can be considered for an integrated approach with the building sector:
• Lifecycle assessment and embodied carbon reporting: Encouraging or mandating lifecycle assessments
(LCAs) and embodied carbon reporting for building projects can help identify emission hotspots and prioritize
the use of low-carbon materials11.
• Green procurement policies: Establishing green procurement policies that prioritise low-carbon cement,
steel, and aluminium can create a market for these products and incentivise further decarbonisation in these
industries12.
• Collaboration across the value chain: Collaboration between material producers, construction companies,
architects, and policymakers is essential to drive innovation and implement low-carbon solutions at scale.

iii. Construction of green buildings and increasing energy efficiency


Operational energy use in buildings constitutes a major portion of energy consumption and emissions.
Reducing this energy use through improved efficiency is crucial for achieving net-zero targets in the sector13.
Key strategies include:
• Building envelope optimisation: High-performance building envelopes—comprising walls, windows, roofs,
and insulation—can reduce energy demand for heating, ventilation, and air conditioning (HVAC). Technologies
like double-glazed windows, cool roofs, and advanced insulation materials contribute to lower energy
consumption14.

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• High-efficiency HVAC and lighting systems: Transitioning to energy-efficient HVAC systems and lighting,
such as LED lights, occupancy sensors, and smart controls, can significantly cut energy use in buildings15.
• RE integration: Utilizing renewable energy technologies, such as rooftop solar panels, geothermal heating,
and solar water heating, can decrease reliance on conventional energy sources and contribute to the building’s
energy needs16.

iv. Policy support for green buildings


To accelerate the green building transition, future policy support should focus on deeper integration of
sustainability, enhanced enforcement, and innovative incentives.
• Strengthening building codes and standards: India’s existing building codes, such as the Energy
Conservation Building Code (ECBC) and Eco Niwas Samhita, offer a strong foundation for energy efficiency
in new constructions. However, future policies could go further by making these codes mandatory for all new
commercial and residential projects. This would not only ensure wider compliance but also help mainstream
energy-efficient designs.
The Government of Odisha’s Energy Conservation Building Code Rules, 2022 also represents a significant
opportunity to promote energy efficiency in commercial buildings. The Rules apply to every building, which is
used or intended to be used for commercial purposes, having a connected load of 100 kilowatt (kW) or above,
or a contract demand of 120 kilo-Volt-ampere (kVA) or above or a total built-up area of 1000 square meter or
above (excluding stilt or basement meant for parking areas).17
Overall, the state’s ECBC Rules also aligns with national mandates like the Energy Conservation Act of 2001,
emphasising energy-saving practices through prescriptive and performance-based compliance pathways.
By setting specific requirements for building components—such as ventilation, HVAC systems, and RE
integration—the code offers a structured approach toward reducing carbon footprints. It also mandates the
use of certified auditors, ensuring a level of technical scrutiny that promotes accountability and adherence
to the standards.
However, so far there have not been significant strides in the implementation. As per stakeholders, one
critical issue lies in the potential administrative burden, as it requires multiple approvals, certifications, and
compliance checks by empanelled auditors in various phases. Additionally, the provision that deviations
from energy performance goals could result in revoked permits or occupancy restrictions creates some
compliance risks for small developers who may lack resources for technical adjustments. Thus, the success
of the OECBC will hinge on effective coordination between stakeholders, including developers, auditors,
and government agencies. Capacity-building initiatives and streamlined processes could help mitigate the
bureaucratic complexity, ensuring that the code achieves its objective of sustainable urban development.
• Incentives and financing mechanisms: To encourage wider adoption of green buildings, financial incentives
will be crucial. Future policies could introduce comprehensive subsidies, tax rebates, or reduced loan interest
rates for developers and homeowners who achieve green building certifications like GRIHA or IGBC.
• Integration with the policies: Green building standards should not exist in isolation but be integrated with
broader urban development policies. Future policies could link green building requirements with central and
state initiatives like the Pradhan Mantri Awas Yojana (PMAY) and the Smart Cities Mission. By tying green
building mandates to housing schemes and infrastructure development, governments can ensure that all
public projects meet sustainability benchmarks18.

v. Workforce transition
For the building and construction sector, a key aspect of the workforce transition will be massive skilling and
reskilling. The following measures need to be considered.
• Training programmes: Develop and implement training programmes to equip the workforce with skills in
energy-efficient building technologies, sustainable construction methods, and renewable energy integration.
• Collaboration with educational institutions: Partner with technical and vocational education institutions
to design curricula that focus on green building practices, energy management, and emerging construction
technologies.

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• Certification programmes: Promote industry-recognised certification programmes that validate new skills
in green construction practices, energy-efficient design, and building maintenance.
• Promote awareness: To facilitate workforce transition, it is also essential to promote awareness of job
opportunities in green construction.
Overall, the transition of the building and construction sector will be crucial for a just energy transition in
Odisha considering the sector’s centrality in the state’s economy and employment, especially in urban and peri-
urban areas. The sector’s transition will also be important to build climate resilient towns and cities, which will
be an essential component of strengthening climate action.

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SECTION V

JOBS AND
WORFORCE
Chapter 8: GREEN JOBS AND
WORKFORCE DEVELOPMENT

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CHAPTER 8

Green Jobs and Workforce


Development
8.1 Introduction
Fossil fuel sectors and fossil fuel-dependent industries in Odisha employ a large number of people formally
and informally. As discussed in previous sections, coal mining, coal-based power plants, and factories are key
employment sources. Considering sectors, such as coal mining, coal-based power plants, and only iron and steel,
aluminium, and cement in the factories segment, it is estimated that these sectors collectively employ over
1.7 lakh people formally and many more informally and indirectly. Seven districts, including Angul, Dhenkanal,
Jajpur, Jharsuguda, Sundargarh, Sambalpur, and Kendujhar, account for approximately 88% of the total formal
workers considering employment only in these industries. Besides, other factories and the construction sector
employ thousands of workers in these districts. Some of these districts, such as Sundargarh and Kendujhar
also have high level of employment dependence on mining of minerals like iron ore, intricately related to
these industries.
A critical challenge during the energy transition, therefore, will be to minimise job losses and support the
workforce transition through targeted interventions. A specific focus should be on districts and regions that are
highly dependent on these industries. This will require enhancing workforce employability in green economic
sectors, such as RE, green industries, and sustainable construction.
Beyond workforce transition, job creation in green industries will be essential to avoid exacerbating
unemployment challenges in fossil fuel-dependent regions. While Odisha has a Labour Force Participation Rate
(LFPR) of 61.3%, higher than the national average of 57.9%, the state also faces an unemployment rate of 3.9%,
slightly above the national average of 3.2%.1 Notably, the unemployment rate among educated youth (aged 15–
29) stands at 39.95%.2 This highlights the potential for addressing unemployment through the development of
emerging low-carbon/green industries in these areas.

Table 8.1: District-wise formal workers in fossil fuel industries in key districts
District Coal Coal-based power Iron and steel Aluminium Cement District
mining plants total
Crude steel Sponge iron
Angul 21,593 8,511 4,024 3,315 2,107 39,550
Dhenkanal 2,498 5,497 2,899 10,894
Jajpur 1,718 9,707 561 690 12,676
Jharsuguda 9,250 8,339 2,840 859 1.233 400 21,689
Kendujhar 436 3,697 3,205 7,338
Sambalpur 2,814 3,490 8,219 5,632 2,794 22,949
Sundargarh 6,858 4,260 12,990 5,525 2869 32,502
Sector total 40,515 29,252 46,974 21,996 4,902 3,959 1,47,598
Source: iFOREST analysis

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8.2 Green job potential
Odisha’s abundant coal and mineral reserves, along with its RE potential, present a unique opportunity to build
a sustainable green industrial economy over the next three decades. However, as traditional carbon-intensive
industries transition towards low-emission alternatives, the state faces the challenge of mitigating job losses
and socio-economic disruptions. Proactive measures will be essential to safeguard existing jobs and generate
new employment opportunities within emerging green sectors.
The state’s ongoing industrial transformation is being facilitated by progressive policies, including the
Industrial Policy Resolution (IPR, 2022)3 and the Renewable Energy Policy (2022)4 which have bolstered investor
confidence. These frameworks aim to promote sustainable growth, encourage green manufacturing, and
attract investments in RE and other low-carbon industries.
Over the next decade, Odisha has a strategic advantage to establish a robust green energy and industrial
foundation. This can be enabled through the responsible utilisation of coal to power key industries, while
simultaneously developing infrastructure necessary for future green manufacturing.
The IPR (2022) and the State Government’s Economic Survey Report (2024)5 also highlight priority sectors for
promoting industrial and economic development. These include green energy, green manufacturing, and electric
mobility, with a strong focus on employment generation. Additionally, the state government is committed to
developing an industry-ready skilled workforce, ensuring that the workforce is equipped to support emerging
industries and sustain long-term economic growth.

POLICY FOR GREEN INDUSTRY DEVELOPMENT TO SUPPORT JOBS


The IPR 2022 envisions a green and sustainable industrial base by fostering innovation, investment,
infrastructure development, fiscal incentives creation, and infrastructure facilitation. The policy has
specified certain thrust sectors for boosting industrial growth in the state in the coming years among
which green energy, green manufacturing, and electric mobility (e-mobility) are noted as important
opportunities .
The policy specifically focuses on promoting green hydrogen and ammonia production for industrial use,
attracting investment in solar PV manufacturing and storage technologies (e.g., batteries), and supporting
private sector-led distributed RE projects for industries to meet energy needs.
In green manufacturing, the focus is on EV manufacturing, battery production, manufacturing of energy-
efficient appliances, LED lights, and green building materials, among others. The policy also focuses on
promoting low-emission cement and steel production technologies.
Concerning EVs, the policy aligns itself with the Odisha Electric Vehicle Policy 2021, which promotes
the use of EVs across public and private transportation. The IPR 2022 has a focus on infrastructure
development to support EVs. This includes developing charging stations and battery-swapping
infrastructure in collaboration with private and public partners, and earmarking industrial parks and
EV zones with dedicated facilities for EV and component manufacturing, among others. The policy also
mentions the establishment of EV Centers of Excellence for R&D, skilling, and testing.
The policy recognises that all of these will require skilled workforce. Overall, for skilling and workforce
development, the policy has emphasised on partnerships with technical institutes to develop programs on
renewable energy technologies, sustainable manufacturing, and electric mobility.
Source: Industry Department, Government of Odisha. (2022). Industrial Policy Resolution. https://investodisha.gov.in/download/
industrial_policy_resolution_2022.pdf

Overall, considering the resource potential, policy environment, and growth potential of green industries,
the following are some of the key sectors that will be important for boosting opportunities for green
economic growth, while enhancing job opportunities in transition regions, and contributing to the state’s
employment outcomes.

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i. Green energy: Odisha has significant potential for green energy development and boosting employment
opportunities in the RE sector. As discussed, the state has set an RE target of 11 GW by 2030. Estimates indicate
that meeting this target could generate at least over 32,000 full-time employment (FTE) opportunities across
multiple RE segments. Among them, the solar sector dominates the employment potential, with a target to
install 7.5 GW by 2030. Employment in the solar segment will increase progressively as capacity expands,
reaching 6,900 FTE annually by 2029-30, accounting for a total of 25,875 FTE over the next six to seven years.

Table 8.2: Potential RE jobs


Sector 2025-26 2026-27 2027-28 2028-29 2029-30 Total
Capacity target (GW) 0.7 1.3 1.5 2 2 7.5
Solar
Estimated FTE 2,415 4,485 5,175 6,900 6,900 25,875
Capacity target (GW) 0.2 0.8 0.5 0.25 0.25 2
Wind
Estimated FTE 254 1016 635 317.5 317.5 2540
Capacity target (GW) 0.06 0.03 0.01 0.09 0.19
Small hydro
Estimated FTE 240 120 40 360 760
Capacity target (GW) 0.06 0.06
Large hydro
Estimated FTE NA NA

Pumped Storage Capacity target (GW) 1.2 1.2


Plant Estimated FTE 3,000 3,000
Capacity target (GW) 0.96 2.13 1.5 2.26 3.6 10.95
Total RE
Estimated FTE 2,969 5,651 5,810 7,268 10,668 32,175
Source: iFOREST analysis based on employment factor approach for each sector.
1. For solar, the jobs have been estimated considering ground-mounted solar with an employment factor of 3.45/MW for direct jobs.6
2. For wind, the jobs have been estimated with an employment factor of 1.27/MW of direct jobs.7
3. For hydro, the jobs have been estimated with an employment factor of 4/MW for direct jobs.8
4. For the pumped storage plant, the employment factor is 2.5/MW for direct jobs.9

However, the overall potential of RE jobs is much higher considering the RE potential of the state that can be
harnessed. An assessment of RE potential by iFOREST, considering the modest use of wasteland and reservoir,
shows that solar potential alone is about 170 GW in the state.
In addition to RE, Odisha has set ambitious production targets for green hydrogen, green ammonia, and
other derivatives by 2030—green ammonia at 5.8 MMTPA, green hydrogen 0.1 MMTPA, and other derivatives
0.5 MMTPA10—which are expected to play a critical role in supporting green jobs. These industries will require
skilled workers for plant operations and maintenance, as well as experts in supply chain management and
logistics to ensure smooth production and distribution. Additionally, there will be a growing demand for
research and development (R&D) specialists focused on enhancing process efficiency. Significant investments
in infrastructure development, such as for storage facilities and transportation networks will further contribute
to employment generation.

ii. Green metals and mining: Odisha, with its vast reserves of minerals such as iron ore, bauxite, and
manganese, holds a central role in India’s green transition by enabling the growth of green metals and sustainable
mining practices. This transition presents significant opportunities for Odisha to diversify its mining sector,
sustainable mining technologies, and mineral recycling, while simultaneously generating green jobs.
For example, the segment will require mining engineers and geologists specialising in sustainable mining
techniques, officials to ensure environmental compliance, technical workers to operate low-emission equipment
and autonomous technologies, workers in ore beneficiation plants, RE technicians to manage on-site solar or
wind installations in mining areas, R&D specialists, among others.

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iii. Green manufacturing: The manufacturing sector in Odisha is crucial for the state’s green growth and green
jobs pathway with already a share of 54% of the industrial GSVA. To maintain a strong manufacturing sector, it
will be essential to increase green manufacturing. The state can promote the manufacturing of electric vehicles
(EVs), solar PV panels, and batteries for energy storage, which will not only drive the transition to clean energy
but also boost domestic production of high-value products and create jobs.
For example, in the EV sector, new roles will arise in battery manufacturing, manufacturing of other electronic
equipment, servicing and maintenance, R&D, EV charging infrastructure, supply chain logistics, among others.11

iv. Green construction and green infrastructure: Odisha is experiencing a rapid upbanisation with the urban
population expected to reach 98.5 lakhs by 2031. Therefore, green construction will be crucial for the sector.
As per feedback from stakeholders, this will involve transforming materials and practices in construction
and infrastructure development. Developing a skilled workforce across the entire value chain will be critical,
including expertise in sustainable building materials, energy efficiency of buildings, green utilities, and green
certification, among others.

8.3 Skill ecosystem


Odisha is at the forefront of skilling initiatives in India. The State Government has placed a strong emphasis on
skill development as a part of its broader strategy to enhance workforce readiness and boost economic growth.
This initiative aligns with the state’s vision of creating future-ready human capital capable of meeting both
domestic and global market needs.
Odisha’s ‘Skilled in Odisha’ programme stands out as a key element, focusing on improving vocational education
through Industrial Training Institutes (ITI). The nodal agencies implementing skill development schemes and
initiatives in Odisha are the Skill Development and Technical Education Department (SDTE) and the Odisha
Skill Development Authority (OSDA). However, even with progressive schemes and investments, Odisha faces
a considerable gap in the skilling ecosystem, with 10% of the youth reported to be receiving formal training.12
The skilling ecosystem in Odisha has been evaluated by considering the key skilling programmes, the
infrastructure, and the types of skilling offered at the facilities.

i. Programmes and schemes


Odisha’s skilling ecosystem leverages both central and state-level schemes, aligning with the state’s development
priorities and growth aspirations. The key Central Government schemes include Pradhan Mantri Kaushal Vikas
Yojana (PMKVY)13 which is a flagship scheme of the Ministry of Skill Development and Entrepreneurship (MSDE),
Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDUGKY)14, and the National Apprenticeship Promotion
Scheme (NAPS)15 among others.
The State Government has taken significant initiative in recent years to expand the skilling ecosystem in
the state. Among the state schemes, the key ones include, Nutana Unnata Abhilasha (NUA) Odisha,16 the
Placement-linked Training Programmes (PLTP),17 the Nano Unicorn scheme,18 and Swakalpa,19 among others,
which are implemented through the State Government’s World Skill Centre (WSC), OSDA, SDTE, and Directorate
of Technical Education and Training (DTET), among others.
These schemes can play a crucial role in workforce skilling, upskilling, and development, aligning with the
state’s vision of preparing the workforce for emerging sectors and supporting a low-carbon economy.

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KEY STATE SCHEMES
NUA Odisha: The Nutana Unnata Abhilasha (NUA) Odisha scheme developed in 2023, aims to address the
scarcity of skilled human resources in emerging economic sectors and trades. The scheme focuses on
offering high-quality training, fostering industry linkages, and enhancing employability skills. It leverages
both existing and new skilling institutions while and industry partnerships to ensure impactful training
across all 30 districts of Odisha, with a special focus on aspirational districts, tribal, and remote areas.
The NUA initiative recognises the need to develop high-quality infrastructure by setting up advanced
laboratories and incentivising training providers. By prioritising the training of trainers and curriculum
development, it emphasises long-term capacity building. In addition, the scheme’s wide accessibility,
offering online courses, ensures outreach to a diverse set of participants across 30 districts.
The budget allocation for the scheme is I385 crores over the period 2023-24 to 2025-26, which signals
the government’s substantial commitment to workforce development. This strategic funding suggests the
ambition to generate scalable and sustainable skilling ecosystems that align with the future demand for
skilled labour across multiple sectors.
The Placement-linked Training Programme (PLTP): The PLTP has been a significant initiative in Odisha
since its inception in 2011-12. Designed to enhance the skills of youth, particularly targeting school
and college dropouts, the programme aims to improve employability and integrate individuals into the
workforce. Conducted through a network of both private and government project implementing agencies,
PLTP emphasises a demand-driven approach, tailoring courses to align with the needs of various sectors.
Over the years, PLTP has trained a substantial number of participants, with a total of 1,13,901 individuals
benefiting from the programme between 2011 and 2023 with very high placement records. This extensive
outreach reflects the initiative’s commitment to fostering skill development across all demographics,
ensuring that diverse groups have access to valuable training opportunities.
Going ahead, the programme is poised to continue its trajectory by introducing additional demand-
driven courses. This adaptability is crucial, as it allows PLTP to respond effectively to the evolving job
market and the specific needs of employers.
Nano Unicorn: The Nano Unicorn scheme is designed to support entrepreneurship in rural areas. The
scheme aims to empower skilled youth by promoting entrepreneurship as a solution to challenges such
as rural migration and unemployment. Promulgated in 2024, it will support 1,200 Nano Unicorns between
FY 2023-24 to 2025-26 by providing refundable seed funding up to rupees one lakh each. The scheme
envisages mentoring and handholding support to the Nano Unicorns apart from the refundable seed
funding to ensure sustainability. The scheme will cover all 30 districts of the state with a focus on 10
aspirational districts.
Swakalpa: Another programme Swakalpa was launched by the Odisha Skill Development Project (OSDP)
with a mission to empower young individuals through self-employment opportunities and entrepreneurship
skills. The primary goal of the initiative was to prepare 10,000 youth across Odisha with essential
entrepreneurship skills and help establish at least 1,000 micro-businesses.
A key focus of the programme was to support sustainable economic growth while promoting gender
equality and inclusivity by ensuring at least 25% representation of women at every level.
Sources:
1. Skill Development & Technical Education Department, Government of Odisha. (2023). Guidelines for
NUA Odisha. https://nua.skillodisha.gov.in/download/NUA_Odisha_Guidelines_Notified.pdf
2. Directorate of Skill Development cum Employment, Government of Odisha. (2024). https://dsde.odisha.gov.in/en/pltp
3.. Skill Development & Technical Education Department, Government of Odisha. (2024). Guidelines for
The Nanu Unicorn Scheme. https://sdte.odisha.gov.in/sites/default/files/2024-03/Nano%20Unicorn%20Guidelines%20
11.03.2024.pdf
3. Odisha Skill Development Authority. (2024). Swakalpa. https://www.swakalpa.in/about

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ii. Infrastructure and courses offered
The skilling infrastructure in Odisha primarily revolves around ITIs and polytechnic institutes, which are spread
across various districts of the state. As of 2024, Odisha has 72 operational ITIs and 34 polytechnics, with intake
capacities of 23,512 and 8,730 students, respectively.20 Among the ITIs, 39 have been designated as Centres of
Excellence, focusing specifically on employability skills. For the academic year 2023-24, the placement rates for
ITI and polytechnic graduates stood at 36% and 54%, respectively.21
There are 74 different courses taught at ITIs in the state. These include courses related to electrician (19%),
fitter (19%), welder (9%), mechanic (5.5%), electronic mechanic (4.2%), and computer programming (5.5%).
Overall, 30 ITIs have at least one course related to emerging green industrial job roles, such as solar technician
and EV mechanic with a total strength of 1,008 students.22
Besides, the traditional ITIs and polytechnics, a key initiative in Odisha is the establishment of the World
Skill Centre, a state-of-the-art facility aimed at cultivating the future workforce. Established in 2021, the center
responds to the growing demand for skilled labour in emerging sectors, particularly in RE and sustainable
manufacturing. By emphasising advanced technologies and digital skills, the WSC is dedicated to preparing
individuals for the jobs of tomorrow.23 The WSC primarily functions as a finishing school as of now for students
coming from ITIs and polytechnics. As per official feedback, these students are enrolled in one-year courses
and after that, they receive good placements. The placement record in the initial years has been about 90% with
industrial salaries starting at about rupees two lakhs per year.
As a model for contemporary vocational training, the World Skill Centre prioritises practical, hands-on
learning experiences that meet industry requirements. It provides specialised programmes tailored to the local
economy, creating an environment where learners can acquire relevant skills that boost their employability.
Additionally, the centre envisages partnering with industry stakeholders to ensure that its training remains
current and aligned with the evolving job market.24

iii. Overall assessment of schemes and skilling infrastructure to support transition


While the above-mentioned schemes and initiatives are significant, the current skilling ecosystem yet does not
adequately address the growing demand for jobs in various RE segments, and other sectors green and high-
tech industrial sectors. While initiatives such as the World Skill Centre and NUA Odisha, are well positioned
to accommodate the need for workforce development for RE, green manufacturing, and green construction,
the courses and training modules need to be further strengthened based on in-depth skill gap assessment,
potential demands, and market outlook.25 The PLTP, which has a high placement rate,26 should also modify the
courses and training modules to incorporate emerging green sectors to leverage its outreach and employability
focus. Overall, in various schemes and programmes, the existing courses need to be updated to align with future
job requirements.
Besides, programmes, such as the NAPS27 and the Nano Unicorn Scheme28 have established good industry
connections and support entrepreneurship, they lack specific modules focused on green industries. These
schemes should be realigned to promote green business models and apprenticeships in emerging sectors.
In addition to redesigning existing skilling schemes, enhancing the capacity of technical education and
training institutes in Odisha is essential for preparing the workforce for the emerging green economy. Specialised
institutes, such as the Biju Patnaik National Steel Institute. Various National Skills Qualification Framework
(NSQF) accredited institutes in the state, along the World Skill Centre will play a vital role in this expansion. By
focusing on advanced technologies and digital skills, these institutes can provide targeted training that aligns
with industry needs, particularly in green sectors. This will not only improve employability but also facilitate the
integration of innovative practices in local industries.

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Table 8.3: Strengths and gaps of skilling programmes
Schemes Total number of Total placed Strengths Gaps
people completed
training in last five
years in the state*
PMKVY 5,01,704 1,15,391 (23%) Large-scale reach and network. Low placement,
challenges with
employability skills
for green industries
DDUGKY 2,14,703 1,76,001 (81%) Rural youth skilling, high placement. No green job focus
in rural areas.
NAPS 23,744 Not available Strong industry linkages. Negligible
green industry
apprenticeships.
NUA Odisha 95,000 Data not Focus on offering high-quality Lacks green skills
available training, fostering industry linkages, courses.
and enhancing employability skills,
including digital skills.
PLTP 1,13,901 trained 1,13,901 (100%) Emphasises a demand-driven No emphasis on
between 2011- approach, tailoring courses to align emerging green
2023 with the needs of various sectors; sectors.
high focus on placement.
World Skill 640 574 (89%) High class modern facility with focus Needs broader
Centre on future skills. green sector
coverage.
Source: iFOREST compilation based on interactions with stakeholders from OSDA, DTET, and SDTE in May 2024. Beneficiaries and
placement data derived from various state and central government dashboards relevant to the respective scheme and Apprentice
performance dashboard of Skill India, 2024 . *For new schemes, training since inception year has been considered.

8.4 Strengthening skilling and workforce


development
Strengthening the ecosystem for skilling and workforce development is crucial for Odisha’s green transition and
the creation of employability of the existing and future workforce in the low-carbon economy. As the state moves
away from carbon-intensive industries, it must equip its workforce with the skills needed to thrive in emerging
green industries such as RE, green manufacturing, sustainable construction, and electric mobility. Building an
inclusive ecosystem to ensure this requires targeted interventions in the development of foundational skills,
such as education, strengthening reskilling and upskilling programmes aligning with technological changes and
emerging industries, designing industry-specific courses, and stronger partnerships between skilling institutes,
agencies, and industry players. The following are some of the key aspects that can be considered in this regard.

i. Strengthening foundational skills and education: A robust workforce development ecosystem must
start by strengthening foundational education. Higher education, including technical education and acquisition
of digital skills should be enhanced, ensuring that workers are well-prepared for and adaptable to evolving
industries. Partnerships between educational institutions and skill development centers should foster early
exposure to green technologies, sustainable practices, and industrial careers.

ii. Skill mapping and skill gap assessment: To support a smooth and inclusive energy transition of the
workforce, regular skill mapping and skill gap assessments are essential, especially in the state’s fossil fuel-

100
dependent industrial regions like Angul, Dhenkanal, Jharsuguda, Sundargarh, and Sambalpur, among others.
These exercises will help identify the existing skills of the workforce and align them with emerging opportunities
in green sectors. Mapping will also allow the state to pinpoint skill shortages and develop targeted programmes
for reskilling, upskilling, and new workforce integration.
Additionally, sector-specific skill gap assessments will anticipate future workforce needs by analysing trends
and labour market projections, helping industries and institutions stay ahead of the transition curve. Engaging
stakeholders from government, industries, academic institutions, and local communities in these assessments
will ensure a holistic approach. By institutionalising these assessments as part of Odisha’s skilling ecosystem,
the state can ensure that its workforce is continuously prepared to meet the evolving demands of a green
economy while mitigating the risks of unemployment in transition regions.

iii. Developing sector-specific skilling courses and modules: Develop targeted skilling courses to help
existing workers pivot to green sectors with minimal disruption align with industry demands, and ensure that
the workforce is equipped to support Odisha’s green transition. This includes short courses for workers with
related skills (e.g., steel plant operators transitioning to hydrogen-based steelmaking) and intensive modules for
new entrants. Lifelong learning pathways should be promoted by offering modular certifications that workers
can accumulate over time to enhance their qualifications in a low-carbon economy. The integration of practical,
hands-on learning and industry collaborations will enhance employability and prepare workers for emerging job
roles.

iv. Green skilling centers in transition regions: Set up dedicated green skill centers in fossil fuel-dependent
districts such as Angul, Dhenkanal, Jharsuguda, Sundargarh, Sambalpur, etc., to ensure access to skilling. This
will be particularly important for women as they have mobility challenges. Developing skill centres in transition
regions by leveraging existing infrastructure—such as repurposed office buildings from closed mines—will
enable rapid deployment and reduce infrastructure costs.

v. Expanding industry-academia partnerships: The skill ecosystem must strengthen collaboration between
industry and academia. This can be achieved by engaging key green industry players to co-design specialised
programmes, such as battery technology, hydrogen technology, and EV-related jobs, among others. Joint
programmes with green industries will also foster apprenticeships, providing on-the-job learning and enhancing
employability.

vi. Developing a green jobs and skills portal: Create a state-specific ‘Green Jobs and Skills Portal’ to track
employment opportunities, training programmes, and industry demand. This portal can function as a bridge
between job seekers, skilling centers, and employers, offering real-time information on market trends and
skilling requirements. Integrating career counselling services will guide workers and students toward future
green careers.

vii. Social inclusion and support for vulnerable groups: Ensure that skilling programmes are inclusive by
designing specific initiatives for marginalised communities, women, and informal workers. Special provisions
should support the transition of workers from declining industries, with financial assistance, counselling, and
targeted programmes to minimise job loss impacts and foster mobility.
By focusing on foundational education, targeted skilling, industry collaboration, and digital competency,
along with access to advanced skilling for various socio-demographic groups, Odisha can create a resilient
workforce prepared to thrive in the emerging green economy.

101
102
SECTION VI

WAY AHEAD
Chapter 9: AGENDA FOR ACTION

103
CHAPTER 9

Agenda for Action


9.1 Introduction
Odisha aims to become the industrial hub of Eastern India and a trade gateway to South and East Asia in the
coming years. However, as industrial growth accelerates, the state must balance economic ambitions with its
climate commitments. Odisha plays a crucial role in India’s net-zero journey and just energy transition. With
large-scale industrial expansion—particularly in coal, power, steel, and construction sectors—Odisha requires a
climate-responsive strategy to lower the emissions intensity of its economy, adopt cleaner energy sources, and
align with national and state climate and RE goals.
A well-planned, cross-sectoral strategy is essential for Odisha to accelerate climate action, achieve green
growth, and ensure a just energy transition. Key components must include reducing industrial emissions
through technological upgrades and adopting RE, while repurposing land and energy assets for sustainable and
productive economic use. At the same time, the strategy must focus on green job creation, workforce skilling,
and inclusive economic development to support communities that will be potentially affected by the transition
of fossil fuel industries. Through a well-managed transition, the state can position itself as a model for balancing
industrial growth with environmental responsibility, while contributing significantly to India’s climate goals.

9.2 Key action agenda


State governments are at the forefront of addressing the socio-economic impacts of energy transitions on their
local economies and ensuring green and inclusive growth. For Odisha, the key agenda for action, especially for
the next 10 years, will include the following:
i. Repurposing land and energy assets;
ii. Setting targets for industrial sectors;
iii. Developing a state Just Transition Policy;
iv. Developing regional just transition plans;
v. Supporting workforce transition and human resource development;
vi. Mobilising financial resources; and,
vii. Building stakeholder consensus and empowering communities.

i. Repurposing land and energy assets: Repurposing land and energy assets is a crucial opportunity to
support just energy transition measures because it enables the creation of sustainable economic activities,
augments green energy development, revitalises local economies, and ensures environmental sustainability in
the transition regions.
For Odisha, repurposing mining and industrial wastelands can help the state achieve the RE targets, diversify
the local economy, and boost employment opportunities. These fragmented land parcels already possess
essential infrastructure, making them ideal for RE projects and enhancing green economic opportunities.
In the next decade, a significant focus should be placed on repurposing readily available mining and industrial
wasteland in Odisha. An analysis by iFOREST indicates that the state currently has 1,680 hectares of mining
wasteland and 3,990 hectares of industrial wasteland.1 Furthermore, by 2030, approximately 11,000 hectares of
coal mining land can be available for repurposing.

104
Regarding energy assets, about 1.4 GW of capacity from four thermal power plant (TPP) units is projected for
repurposing by 2035.
Overall, land repurposing is a crucial opportunity in the coming decades. More than 36,000 ha of land is
available with operational and closed mines in the state. In the coming years, a planned reclamation and
repurposing of mining land through a collaborative approach between the mining company(ies), the state
government, and the local community will be crucial for optimising productive economic use of this valuable
asset and ensuring economic continuity in mining districts and blocks.
Besides coal mining land, repurposing the land available with TPPs is an important opportunity for industries
to develop green energy infrastructure. Nearly 4,200 ha of land is available with the utility-scale plants. Besides,
an estimated 5,904 ha of land is available with the CPPs operating in various districts.

ii. Setting targets for industrial sectors: Setting targets for industrial sectors is essential for facilitating an
energy transition and aligning with broader environmental goals. Clear and measurable targets enable industries
to systematically reduce their carbon emissions, enhance energy efficiency, and adopt sustainable practices.
Odisha has already set a 11 GW RE target by 2030. As investments in the RE sector increase, the state can set
more ambitious targets for the next 10 years.
Similarly, targets need to be set for the mining and steel sectors, the two other critical sectors for achieving
a just energy transition.
In the mining sector, it will be important to set progressive RE adoption targets. Switching to RE sources
can help reduce Scope 1 and Scope 2 emissions from the sector that is related to activities, such as extraction,
processing, material movement, and transportation.
For the steel sector, which is a major contributor to GHG emissions, transitioning to green hydrogen-based
production is crucial for achieving long-term sustainability. Developing a phased roadmap for hydrogen adoption
will allow the sector to make a smooth transition, keeping pace with technological advancements and market
demands. The government can require the establishment of greenfield ‘hydrogen-ready steel plants’ starting in
2025 and mandate the retrofitting of existing plants to support this transition. Following this, a phased approach
to adopting green hydrogen as an energy source can be implemented. The targets can be set at 10% hydrogen
adoption by 2030, 25% by 2035, 50% by 2040, 75% by 2045, and achieving 100% hydrogen utilisation by 2050.
By setting these ambitious yet attainable targets, Odisha can also enhance the Environmental, Social, and
Governance (ESG) performance of its industrial sectors, attract responsible investments, and contribute to the
state’s green growth objectives.2

iii. Development of a Just Transition Policy: To manage the complex and cross-sectoral impacts of the
energy transition, Odisha will require a state Just Transition Policy.
This policy will provide a strategic framework to guide the following:
• Economic diversification and innovation to maintain economic vitality in regions affected by the energy
transition;
• Foster opportunities for green investments especially in districts that have traditionally relied on coal and
other fossil fuel industries;
• Guide workforce transition including of formal and informal workers;
• Enhance social welfare provisions to provide targeted support for informal workers, women, and other
vulnerable groups;
• Support investments in social and physical infrastructure to build community resilience and also attract
businesses and investors;
• Mobilise public and private financing to support just transition measures; and,
• Establish well-designed and dedicated institutional structures.
Overall, the Just Transition Policy should provide clear guidance on embedding just transition strategies
across multiple policy domains and plans, including state climate change policy and action plans, industrial
policy, economic development policies, labour support, and welfare policies, among others. This comprehensive

105
integration will ensure that the transition to a low-carbon economy is inclusive, well-coordinated, and aligned
with broader state priorities.

iv. Development of regional just transition plans: While fossil fuel industries and other industries in the value
are spread across various districts, seven districts are highly significant from an energy transition perspective.
These include Angul, Dhenkanal, Jajpur, Jharsuguda, Sundargarh, Sambalpur and Kendujhar districts.
These seven districts account for 100% of the coal mines and utility-scale coal-based power capacity, and
88% of the coal-based captive power capacity. Besides, 97% of the crude steel capacity and 94% of sponge
iron capacity are concentrated in these districts, and a majority of the iron ore mines, accounting for 99% of
the production capacity are located here. They also account for 100% of the aluminium production capacity and
65% of the cement capacity (integrated plants).
Given the geographic concentration of coal mining, coal-based power, and various fossil fuel industries in
these specific regions, developing regional just transition plans for these clusters is essential. These plans
should primarily be designed as inclusive and outcome-oriented investment plans to support strategic planning
and investments for a just energy transition in these regions.
For Odisha, the development of at least three regional just transition plans will be necessary in the next 10
years to ensure a well-planned transition in these regions in the coming years. The three clusters include:
• Angul-Dhenkanal cluster;
• Sundargarh-Sambalpur cluster; and,
• Jharsuguda cluster.
The plans should be designed with a 10-year horizon with key targets and milestones, to provide a structured
approach for managing the socio-economic impacts of decarbonisation and ensuring inclusive growth.
A decade-long timeline will allow sufficient scope for economic diversification, workforce transition, and
infrastructure development while maintaining economic stability. The plans should undergo regular evaluations
and revisions as required, to align with emerging challenges and opportunities.

v. Supporting workforce transition and human resource development: A key aspect of just energy
transition and sustaining green growth in the state will be ensuring the successful transition of the workforce
associated with fossil fuel industries, and developing human resources aligning with the low-carbon economy.
In Odisha, the energy transition is expected to directly impact at least 10 lakh (one million) workers employed
in the mining, electricity, manufacturing, and construction sectors. This estimate is conservative, as it
accounts only for registered workers in the seven hotspot districts—Angul, Dhenkanal, Jharsuguda, Sundargarh,
Sambalpur, Jajpur, and Kendujhar. The real impact will likely be much broader, as it does not fully capture the
large informal workforce engaged in these sectors and their associated value chains.
To ensure an inclusive workforce transition and human resource development, actions will be required both
at the policy front and to strengthen the skilling ecosystem, including building foundational skills.
On the policy front, labour laws can be strengthened with specific provisions aimed at ensuring job security for
workers. This includes establishing clear provisions for severance pay and compensation for workers affected
by the transition in various industries. In addition, it is crucial to develop provisions within state labour laws to
ensure worker security in the emerging green economy. By reinforcing these protections, the government can
help mitigate the impacts of economic shifts on vulnerable workers, such as informal workers, including women.
Concerning the skilling ecosystem, as discussed in earlier sections, developing and implementing targeted
skilling programnes in alignment with the skill needs in the green economic sectors will be important. Aligning
skilling initiatives with technological advancements will be essential for preparing the workforce to thrive in a
rapidly changing industrial landscape.
Finally, strengthening education infrastructure and resources will be essential for cultivating foundational
skills within the future workforce. By enhancing access to quality education and vocational training, individuals
can be imparted the necessary competencies to thrive in an evolving job market and engage in decent and well-
paid jobs.

106
vi. Mobilising financial resources: A well-structured financial strategy is critical for supporting Odisha’s just
energy transition. Mobilising financial resources will require innovative approaches, including the utilisation of
existing public funds, incentives for private investment, and strategic alignment of national and state resources.
Two key resources for financing this transition are the coal cess and the DMF funds, both of which can be
directed towards supporting green infrastructure, economic diversification, workforce development, and
community resilience.
Concerning DMF funds, the state has the maximum DMF accrual amounting to over I25,858 crore (as per
the Ministry of Mines latest data of 2024), which is nearly 30% of India’s total. About 95% of the accruals are just
from five districts (which are also the transition hotspots), including Angul, Jajpur, Kendujhar, Sundargarh and
Jharsuguda.3
Besides, by 2060, an estimated I39,764 crore will be generated through DMF funds by 2060, considering only
the ongoing and soon-to-start operations. The utilisation of the DMF funds can be aligned with local transition
initiatives, particularly in key mining districts like Angul, Sundargarh, Jharsuguda, and Kendujhar, among others.
Besides DMF, the coal cess (currently subsumed under the GST compensation cess) which is levied at I400
per tonne on coal production and imports, could generate I3,52,592 crore (as discussed in Section I). Odisha
should work with the central government to ensure the coal cess is allocated toward green growth initiatives
and just energy transition programmes.

vii. Building stakeholder consensus and empowering communities: Achieving a just transition will require
strong stakeholder consensus at both the state and district levels to ensure sustained support throughout the
process. Developing an effective communication strategy will be essential to align stakeholders, foster mutual
understanding, and create shared ownership of the transition efforts.
Additionally, empowering local communities through active engagement with district administrations, local
institutions—such as Panchayati Raj Institutions (PRIs) and municipal wards—labour/workers organisations,
women-led groups, and civil society organisations will be crucial. This participatory approach will ensure
inclusive planning and allow continuous feedback on the design and implementation of just transition measures.
In conclusion, a comprehensive and strategic approach to just energy transition will be essential for Odisha
to build a climate-resilient future while fostering green growth. A well-planned transition will not only reduce the
carbon footprint of key industrial and economic sectors, it will also create new economic opportunities, improve
livelihoods, and ensure a sustainable transformation.

107
Annexure 1
Best Available Technologies (BATs) for integrated steel plants
S. Best available Energy savings potential CO2 reduction Remarks
N. Technology (BAT) potential
Electrical energy Thermal energy
Sintering
1. Sinter plant heat Not applicable 0.251 GJ/t-sinter 23.86 kg-CO2/t- The device recovers sensible
recovery (for steam sinter heat in the hot air from
generation) the sinter cooler to generate
steam.
2. High efficiency burner Not applicable 0.010 GJ/t-sinter 0.44 kg-CO2/t- The multi-slit burner can
in ignition furnace for sinter form successive and uniform
sinter plant frame in the ignition furnace
using coke oven gas.

Coke making
1. Coke Dry Quenching Not applicable 1.9 GJ/t-coke 97.5 kg-CO2/ The heat recovered by inert
(CDQ) tcoke gas from hot coke is used
to produce steam, which
2. 150 kWh/t- coke Not applicable 135.45 kg-CO2/ may be used on-site or to
tcoke generate electricity
3. Coal Moisture Control Not applicable 0.29 GJ/t-coke 27.55 kg-CO2/ CMC uses waste heat from
(CMC) tcoke COG to dry the coal used for
coke making. Coal moisture
is reduced from 8-9% to
3-5%, which reduces fuel
consumption in the coke
oven
Iron making
1. Top Pressure Recovery 50 kWh/t-pig Not applicable 45.15 kg-CO2/t This system generates
Turbine iron pig iron electric power by employing
(TRT) blast furnace top gas to drive
a turbine generator. Blast
furnace gas passed through
TRT is used as a fuel in iron
and steel making processes.
2. Dry gas cleaning plant 9.26 kWh/t-pig Not applicable 8.36 kg-CO2/t pig This system cleans the blast
with iron iron furnace gas that
bag filter goes into TRT power
generation system through
removing dust and water
drops using bag filter.
3. Pulverized Coal Not applicable 1.55 GJ/t-pig 147 kg-CO2/t pig Pulverized coal is directly
Injection (PCI) iron iron injected through the blast
system furnace tuyeres as a partial
substitute for the coke used
in the blast furnace.

4. Hot stove waste heat Not applicable 83-125 MJ/t hot 7.89 kg-CO2/t- The device recovers the
recovery metal CS sensible heat of the flue
gases generated in the
hot stove and the heat is
used in preheating fuel and
combustion air for the hot
stoves.

108
Annexure 1 continued
S. Best available Energy savings potential CO2 reduction Remarks
N. Technology (BAT) potential
Electrical energy Thermal energy
Steel making
1. Low NOx regenerative - 0.2 GJ/t-CS 12.62g- Has high energy saving
burner CO2/t-CS potential with automation.
system for ladle Fuel Direct Injection (FDI)
preheating combustion is adopted.
2. Dry gas cleaning plant 9.26 kWh/t crude Not applicable 8.36 kg-CO2/ This system cleans the
(GCP) with steel t-crude steel blast furnace gas that goes
bag filter into TRT power generation
system through removing
dust and water drops using
bag filter.
3. Regenerative burner Not applicable 0.19 GJ/t-CS 10.66 kg-CO2/t- While one of the burners is
total system CS burning, the other burner will
for reheating furnace work as an exhaust outlet.
The combustion air will be
preheated to a super high
temperature.
4. Induction/hybrid Not applicable To be To be This technology allows
heating for long established established utilising electricity-based
products heating (induction heating)
replacing fully or partially the
existing system.
Source: Adopted from Ministry of Steel, Government of India. (2024). Greening the steel sector in India: Roadmap and action plan

109
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INTRODUCTION
1. Directorate of Economics and Statistics, Government of Odisha. (2024). Odisha Economic Survey
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SECTION I
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gov.in/sites/default/files/2022-09/1647408059_2359.PDF
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Financial/Annual%20Report%20&%20Accounts%20of%20MCL%202022-23.pdf
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files/2024-03/10-07-2024a-energy.pdf
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18. Ibid
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25. The retail employment has been calculated using the thumb rule of minimum 16 employees
per outlet with monthly sales of 170 kiloliters. OMCs use this thumb-rule for calculating
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34. Ibid
35. Ibid
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gov.in/natural-gas/import
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38. Dharma LNG. (n.d.). Adani Total Private Limited. https://dltpl.adani-total.in/en/about-us
39. Petroleum Planning and Analysis Cell, Government of India. (2024). City gas Distribution Network.
https://ppac.gov.in/natural-gas/city-gas-distribution-network
40. Ibid

SECTION II
1. Central Electricity Authority, Ministry of Power, Government of India. (2024, August). https://cea.
nic.in/dashboard/?lang=en
2. Central Electricity Authority, Ministry of Power, Government of India. (2024). All India Electricity
Statistics: General Review Report, 2024. https://cea.nic.in/wp-content/uploads/general/2024/
General_Review_2024_2.pdf
3. Central Electricity Authority, Ministry of Power, Government of India. (2022). Report on twentieth
electric power survey of India (Volume-I). https://cea.nic.in/wp-content/uploads/ps___
lf/2022/11/20th_EPS____Report___Final___16.11.2022.pdf

111
4. Central Electricity Authority, Ministry of Power, Government of India. (2024). All India Electricity
Statistics: General Review Report, 2024. https://cea.nic.in/wp-content/uploads/general/2024/
General_Review_2024_2.pdf
5. Ibid
6. Directorate of Economics and Statistics, Government of Odisha. (2024). Odisha Economic Survey
2023-24. https://pc.odisha.gov.in/publication/economic-survey-report
7. Central Electricity Authority, Ministry of Power, Government of India. (2024, August). https://cea.
nic.in/dashboard/?lang=en
8. Central Electricity Authority, Ministry of Power, Government of India. (2024). All India Electricity
Statistics: General Review Report, 2024. https://cea.nic.in/wp-content/uploads/general/2024/
General_Review_2024_2.pdf
9. Ibid
10. Thermal Project Monitoring Division, Central Electricity Authority, Ministry of Power, Government
of India. (2024). Broad status report of under-construction thermal power projects. https://cea.
nic.in/wp-content/uploads/thermal_broad/2024/08/BS_Aug_2024.pdf
11. A factor of 1.3 acres or 0.52 ha per MW has been considered for estimating land under CPPs
12. Central Electricity Authority, Ministry of Power, Government of India. (2022). Norms for Manpower
Requirement in Thermal Power Sector. https://cea.nic.in/wp-content/uploads/tpm_i/2023/06/
FINAL_report_of_the_committee_on_manpower_requirement_norms_in_thermal_power_sector.
pdf
13. Ministry of Environment, Forest and Climate Change, Government of India. (2021). Notification
dated December 31, 2021. http://www.indiaenvironmentportal.org.in/files/file/Draft%20
notification%20on%20ash%20utilization.pdf
14. Central Electricity Authority, Ministry of Power, Government of India. (2023). Report On Fly Ash
Generation at Coal / Lignite Based Thermal Power Stations and It’s Utilization In The Country 2022
– 2023. https://cea.nic.in/wp-content/uploads/tcd/2023/05/Half_Yearly_Ash_Report_2022_23-1.
pdf
15. Central Electricity Authority, Ministry of Power, Government of India. (2023). Unit-wise
FGD implementation status and summary sheet. https://cea.nic.in/tprm/unit-wise-fgd-
implementation-status-and-summary-sheet-june2023/?lang=en
16. NTPC Limited. (2024). Integrated Annual Report 2023-24. https://ntpc.co.in/sites/default/files/
compliances-reports/Annual%20Report%202023-24.pdf
17. Darlipali Super Thermal Power Station. (2021, August). NS Energy. https://www.nsenergybusiness.
com/projects/darlipali-super-thermal-power-station/
18. Odisha Power Generation Corporation Limited. (2022). Expression of Interest (EOI) For Supply of
Limestone for Flue Gas desulphurization (FGD) plants. https://www.opgc.co.in/ten/doc/w_nit-
455_7.pdf
19. Energy Department, Government of Odisha. (2024). Shapath Patra. Letter of Commitment dated
September 6, 2024
20. The New Indian Express. (2024, June). Odisha: Green energy projects worth over Rs 900 crore
gets nod. https://www.newindianexpress.com/states/odisha/2024/Jun/28/odisha-green-energy-
projects-worth-over-rs-900-crore-get-nod#:~:text=This%20substantial%20investment%20
aims%20to,of%2010%20GW%20by%202030

SECTION III
1. National Statistical Office, Ministry of Statistics and Programme Implementation, Government of
India. (2024). Annual Survey of Industries 2021-22. https://www.mospi.gov.in/sites/default/files/
publication_reports/ASI%20Volume%20I%202021-22%20%20Final.pdf
2. Ibid
3. Ministry of Steel, Government of India. (2024). Greening the Steel Sector in India - Roadmap and
Action Plan. https://steel.gov.in/sites/default/files/GSI%20Report.pdf
4. Ibid
5. Ministry of Steel, Government of India. (2023). Steel Consumption in the Country. Press Information
Bureau. https://pib.gov.in/PressReleasePage.aspx?PRID=1776939
6. Ministry of Steel, Government of India (2023). Steel Production in India. Press Information Bureau.
https://pib.gov.in/PressReleasePage.aspx?PRID=1930585

112
7. Ministry Of Steel, Government of India. (2024). Annual Report 2023-24. https://steel.gov.in/sites/
default/files/Annual%20Report%202023-24%20Final_0.pdf
8. Ministry of Steel, Government of India. (2023). Steel Consumption in the Country. Press Information
Bureau. India has emerged as the 2nd Largest Producer of Crude Steel in the world. Press
Information Bureau. https://pib.gov.in/PressReleasePage.aspx?PRID=1930585
9. Department of Steel and Mines, Government of Odisha. (2024). https://www.odishaminerals.gov.in/
IndustryWindow/GrowthPotential
10. Ibid
11. India Brand Equity Foundation. (2023). Odisha State Report 2023. https://www.ibef.org/
download/1706169168_Odisha-November-2023.pdf
12. Joint Plant Committee. (2023). Indian Iron and Steel Database.
13. Ministry of Steel, Government of India. (2024). Greening the Steel Sector in India - Roadmap and
Action Plan. https://steel.gov.in/sites/default/files/GSI%20Report.pdf
14. Down to Earth, Centre for Science and Environment (CSE). (2023, February). India’s iron and
steel industry is capable of emitting less and producing more. https://www.downtoearth.org.
in/pollution/india-s-iron-and-steel-industry-is-capable-of-emitting-less-and-producing-more-
cse-87969
15. International Energy Agency (IEA). (2024, April). Standards for a net zero iron and steel sector in
India. https://www.iea.org/reports/standards-for-a-net-zero-iron-and-steel-sector-in-india
16. Ministry of Steel, Government of India. (2024). Greening the Steel Sector in India - Roadmap and
Action Plan. https://steel.gov.in/sites/default/files/GSI%20Report.pdf
17. Ibid
18. Ministry of Steel, Government of India. (2024). Initiatives taken by Government towards
decarbonisation in steel Industry. Press Information Bureau. https://pib.gov.in/PressReleasePage.
aspx?PRID=2003494
19. Tata Steel plans to scale up usage of hydrogen in steel making process: CEO & MD T V Narendran.
(2023, August). ETEnergyworld.com. https://energy.economictimes.indiatimes.com/news/
coal/tata-steel-plans-to-scale-up-usage-of-hydrogen-in-steel-making-process-ceo-md-t-v-
narendran/103115258
20. JSW Energy to set up India’s largest 25 MW green hydrogen project for JSW Steel. (2024, June).
NDTV Profit. https://www.ndtvprofit.com/business/also-setting-up-indias-largest-1-gwh-battery-
energy-storage-system-project-in-rajasthan
21. Tata Steel. (2021, September). Tata Steel commissions India’s first plant for CO2 capture from
Blast Furnace gas at Jamshedpur. https://www.tatasteel.com/media/newsroom/press-releases/
india/2021/tata-steel-commissions-india-s-first-plant-for-co2-capture-from-blast-furnace-gas-
at-jamshedpur/
22. Leading Indian Steel Producer SAIL Partners with Primetals Technologies on Green Steel Transition
at Rourkela Plant. (2024, March). https://www.primetals.com/press-media/news/leading-indian-
steel-producer-sail-partners-with-primetals-technologies-on-green-steel-transition-at-rourkela-
plant
23. Ministry of Mines, Government of India. 2024. Press Information Bureau. https://pib.gov.in/
PressReleaseIframePage.aspx?PRID=2022357
24. Ibid
25. Indian Bureau of Mines, Government of India. (2023). Aluminium and Alumina, Indian Minerals
Yearbook 2022. https://ibm.gov.in/writereaddata/files/170989607765eaf18dc09eaAluminium_
Alumina_2022.pdf
26. Directorate of Economics and Statistics, Government of Odisha. (2024). Odisha Economic Survey
2023-24. https://pc.odisha.gov.in/publication/economic-survey-report
27. Indian Bureau of Mines, Government of India. (2023). Aluminium and Alumina, Indian Minerals
Yearbook 2022. https://ibm.gov.in/writereaddata/files/170989607765eaf18dc09eaAluminium_
Alumina_2022.pdf
28. Data as shared by Odisha State Pollution Control Board, June, 2024
29. Environmental Clearance Letter. (2018). Utkal Alumina International Limited. https://www.hindalco.
com/upload/pdf/EC-alumina-refinery-expansion-power-plant-90MW-2018.pdf

113
30. The employment factor approach for aluminium refineries has been applied estimating that about
733-734 workers are engaged for per MMT of refinery capacity
31. Sripathy, P., Nitturu, K., Yadav, D., and Mallya, H. Evaluating Net-zero for the Indian Aluminium
Industry: Marginal Abatement Cost Curves of Carbon Mitigation Technologies. 2024. COUNCIL ON
ENERGY, ENVIRONMENT AND WATER. https://www.ceew.in/sites/default/files/how-can-low-
carbon-sustainable-aluminium-reduce-carbon-emissions-in-india.pdf
32. Aggarwal, N., Piotrowski, M. and Frampton, G. (2024, January). Decarbonizing the aluminum
market: Challenges and opportunities. Atlantic Council. https://www.atlanticcouncil.org/in-depth-
research-reports/report/decarbonizing-the-aluminum-market-challenges-and-opportunities/
33. Zore, L. (2024). Decarbonisation options for the aluminium industry. JRC Publications Repository.
Office of the European Union, Luxembourg. doi:10.2760/880, JRC136525. https://publications.jrc.
ec.europa.eu/repository/handle/JRC136525
34. Ibid
35. International Energy Agency (IEA). (2023). Tracking Aluminium. https://www.iea.org/energy-
system/industry/aluminium
36. Manufacturing Today. (2022, May). Vedanta Aluminium sources 380 MW of renewable energy on
long-term basis. . https://www.manufacturingtodayindia.com/vedanta-aluminium-sources-380-
mw-of-renewable-energy-on-long-term-basis#:~:text=Vedanta%20Aluminium%20sources%20
380%20MW%20of%20renewable%20energy%20on%20long%2Dterm%20basis,-Enters%20
into%20PDA&text=Vedanta%20Aluminium%20has%20announced%20long,for%20Bharat%20
Aluminium%20Company%20BALCO
37. Department for Promotion of Industry & Internal Trade, Government of India. (2024). Annual Report
2023-24. https://dpiit.gov.in/sites/default/files/annualReport_English_20August2024.pdf
38. Indian Bureau of Mines, Government of India. Cement, Indian Minerals Yearbook 2022. (2023).
https://ibm.gov.in/writereaddata/files/1697613517652f86cd47a4fCement_2022.pdf
39. BW Businessworld. (2024, July) ICRA projects 7 to 8% YoY rise in cement volumes for FY2025.
https://businessworld.in/article/icra-projects-7-to-8-yoy-rise-in-cement-volumes-for-
fy2025-525066
40. Ibid
41. Data as shared by Odisha State Pollution Control Board, June, 2024
42. Kansal, A., Bhardwaj, S., Tewari, D. and Garg, T. (2022, November). Decarbonizing India’s Building
Construction through Cement Demand Optimization: Technology and Policy Roadmap - Alliance
for an Energy Efficient Economy. Alliance for an Energy Efficient Economy. https://aeee.in/our-
publications/decarbonizing-indias-building-construction-through-cement-demand-optimization-
technology-and-policy-roadmap/
43. World Business Council for Sustainable Development. (2018). Technology Roadmap: Low-Carbon
Transition in the Cement Industry. https://www.wbcsd.org/contentwbc/download/4586/61682/1
44. McKinsey & Company. (2023). Decarbonizing cement and concrete value chains: Takeaways from
Davos. https://www.mckinsey.com/industries/engineering-construction-and-building-materials/
our-insights/decarbonizing-cement-and-concrete-value-chains-takeaways-from-davos
45. World Business Council for Sustainable Development. (2018). Technology Roadmap: Low-Carbon
Transition in the Cement Industry. https://www.wbcsd.org/contentwbc/download/4586/61682/1
46. Wojtacha-Rychter, K., Kucharski, P. and Smolinski, A. (2021). Conventional and Alternative Sources
of Thermal Energy in the Production of Cement—An Impact on CO2 Emission. Energies. Vol 14(6),
1539. https://doi.org/10.3390/en14061539
47. Alliance for an Energy Efficient Economy. (2021). Emission Reduction Approaches for the Cement
Industry. https://aeee.in/emission-reduction-approaches-for-the-cement-industry/
48. Bureau of Energy Efficiency, Ministry of Power, Government of India. (2018). Improving Energy
Efficiency in Cement Sector: Achievement and way forward. https://www.keralaenergy.gov.in/
files/Resources/Cement_Sector_Report_2018.pdf
49. Cement volumes to grow 7-8 pc in FY25, top 5 firms to solidify market share. (2024, July). ETInfra.
com. https://infra.economictimes.indiatimes.com/news/construction/cement-volumes-to-grow-
7-8-pc-in-fy25-top-5-firms-to-solidify-market-share/111484932
50. Bureau of Energy Efficiency, Ministry of Power, Government of India. (2021). Draft Blueprint on
National Carbon Market. https://beeindia.gov.in/sites/default/files/publications/files/NCM%20
Final.pdf

114
51. Ministry of Power, Government of India. (2023). Carbon Credit Trading Scheme, 2023. https://
beeindia.gov.in/sites/default/files/CCTS.pdf
52. Dalmia Bharat Group. (2020, December). UN Climate Ambition Summit 2020: Dalmia Cement
reaffirms to become carbon-negative by 2040. https://www.dalmiabharat.com/press_release/un-
climate-ambition-summit-2020-dalmia-cement-reaffirms-to-become-carbon-negative-by-2040/

SECTION IV
1. Nathani, S. (2024, March). Role of Building Material Industry in Achieving Low Carbon Growth.
Shakti Sustainable Energy Foundation. https://shaktifoundation.in/role-of-building-material-
industry-in-achieving-low-carbon-growth/
2. Ministry of Housing and Urban Affairs. Government of India. (2021, January). Year End Review 2020.
Press Information Bureau. https://pib.gov.in/Pressreleaseshare.aspx?PRID=1687573
3. Alliance for an Energy Efficient Economy. (2022, March). Tackling embodied carbon from
India’s building sector. https://aeee.in/tackling-embodied-carbon-from-indias-building-
sector/#:~:text=On%20the%20other%20hand%2C%20for,carbon%20aspect%20of%20the%20
buildings
4. Takyar, S. (2023, October). Sustainable Development: Emerging trends in the construction
and building industry. Renewable Watch. https://renewablewatch.in/2023/10/24/sustainable-
development-emerging-trends-in-the-construction-and-building-industry/
5. Directorate of Economics and Statistics, Government of Odisha. (2024). Odisha Economic Survey
2023-24. https://pc.odisha.gov.in/publication/economic-survey-report
6. Ibid
7. Directorate of Economics and Statistics, Government of Odisha. (2024). Odisha Economic Survey
2023-24. https://pc.odisha.gov.in/publication/economic-survey-report
8. British Standards Institution. (2024). Sustainability in Construction. https://knowledge.bsigroup.
com/categories/sustainability-in-construction?creative=672366171573&keyword=sustainable%20
construction%20methods&matchtype=b&network=g&device=c&gad_source=1&gclid=Cj0KCQjw-
mOm3BhC8ARIsAOSbapVflMsBQiP6hV3SUbJB0PSZYYOfKm3oKAFiqvMyLxJWyXQkVyq_omoaAoE-
QEALw_wcB&gclsrc=aw.ds
9. Nukah, D.P., Abbey, J.S., Booth, C.A. and Nonnu, G. (2023). Mapping and synthesizing the viability
of cement replacement materials via a systematic review and meta-analysis. Construction and
Building Materials. Vol 405. https://doi.org/10.1016/j.conbuildmat.2023.133290
10. World Green Building Council. (2023). The Circular Built Environment Playbook. https://worldgbc.
org/wp-content/uploads/2023/05/Circular-Built-Environment-Playbook-Report_Final.pdf
11. Huang, Z., Zhou, H., Miao, Z., Tang, H., Lin, B. and Zhuang, W. (2024). Life-Cycle Carbon Emissions
(LCCE) of Buildings: Implications, Calculations, and Reductions. Engineering. Vol 35, Pages 115-139.
https://doi.org/10.1016/j.eng.2023.08.019
12. Saferi, M.M., Bohari, A.A.M., Bidin, Z.A. and Rais, S.L.A. (2018). Green Procurement for Construction
Project: The Roles of Stakeholder Values. IOP Conference Series: Materials Science and
Engineering. https://iopscience.iop.org/article/10.1088/1757-899X/429/1/012024/pdf
13. Yuan, Z., Zhou, J., Qiao, Y., Zhang, Y., Liu, D. and Zhu, H. (2020). Sustainability. Vol 12, 7862, Pages
1-16. doi:10.3390/su12197862
14. International Energy Agency (IEA). (2022). Building envelopes. https://www.iea.org/energy-system/
buildings/building-envelopes
15. Bengold, A. (2024). Revolutionizing Energy Efficiency in Commercial and Institutional Buildings:
A Complete Analysis. International Journal of Scientific Research and Management (IJSRM).
Vol 12, Pages 7444-7468. 10.18535/ijsrm/v12i09.em12. https://www.researchgate.net/
publication/384210299_Revolutionizing_Energy_Efficiency_in_Commercial_and_Institutional_
Buildings_A_Complete_Analysis
16. International Energy Agency (IEA). (2023). Renewables- Energy System. https://www.iea.org/
energy-system/renewables
17. Energy Department, Government of Odisha. (2022). Odisha Energy Conservation Building Code
Rules 2022
18. Global Buildings Performance Network. (2022). Towards Zero Carbon: Buildings Policies in India.
https://www.gbpn.org/wp-content/uploads/2022/08/GBPN-India-Country-Policy-Insight.pdf

115
SECTION V
1. Directorate of Economics and Statistics, Government of Odisha. (2024). Odisha Economic Survey
2023-24. https://pc.odisha.gov.in/publication/economic-survey-report
2. International Labour Organization (ILO). (2024). India Employment Report 2024: Youth employment,
education, and skills. https://www.ilo.org/publications/india-employment-report-2024-youth-
employment-education-and-skills
3. Industry Department, Government of Odisha. (2022). Industrial Policy Resolution. https://
investodisha.gov.in/download/industrial_policy_resolution_2022.pdf
4. Energy Department, Government of Odisha. (2022). Renewable Energy Policy. https://energy.
odisha.gov.in/sites/default/files/2022-12/3354-Energy%20dept._1.pdf
5. Directorate of Economics and Statistics, Government of Odisha. (2024). Odisha Economic Survey
2023-24. https://pc.odisha.gov.in/publication/economic-survey-report
6. Council on Energy, Environment and Water (CEEW) and Natural Resources Defense Council (NRDC).
2017. Greening India Workforce, Gearing up for Expansion of Solar and Wind Power in India. Issue
Paper. https://www.nrdc.org/sites/default/files/greening-india-workforce.pdf
7. NITI Aayog, Government of India. (2024). India Climate & Energy Dashboard. https://iced.niti.gov.
in/
8. Sarangi, G. K. (2023). Green job opportunities and employment generation potential in the Hindu
Kush Himalaya – key findings and policy recommendations (Working Paper). ICIMOD. https://doi.
org/10.53055/ ICIMOD.1012
9. Kumar, M., Gupta, M. and Habib, T. (2024).The Energy Transition Opportunity: Emerging Green
Jobs in Jharkhand. Technical Brief. https://www.climatepolicyinitiative.org/wp-content/
uploads/2024/10/Jharkhand-Jobs-Report.pdf
10. Energy Department, Government of Odisha. (2024). Shapath Patra. Letter of Commitment dated
September 6, 2024
11. Bhushan, C., Wadhwa, A. and Banerjee, S. (2024). ICE to EV: Challenges, Opportunities, and the
Roadmap for Just Transition in India’s Automobile Sector. International Forum for Environment,
Sustainability and Technology (iFOREST). https://iforest.global/wp-content/uploads/2024/04/
Report-1-National-Report.pdf
12. National Skill Development Corporation. Estimating the Skill Stock in Odisha. https://skillsip.
nsdcindia.org/sites/default/files/kps-document/Odisha_%2802-04-2020%29.pdf
13. Ministry of Skill Development and Entrepreneurship, Government of India. Pradhan Mantri Kaushal
Vikas Yojana 2.0. https://msde.gov.in/en/schemes-initiatives/schemes-initiatives-through-nsdc/
pradhan-mantri-kaushal-vikas-yojana-pmkvy
14. Ministry of Rural Development, Government of India. Deen Dayal Upadhyaya Grameen Kaushalya
Yojana. https://ddugky.info/
15. Ministry of Skill Development and Entrepreneurship, Government of India. National Apprenticeship
Promotion Scheme. https://msde.gov.in/en/schemes-initiatives/apprenticeship-training/naps
16. Skill Development & Technical Education Department, Government of Odisha. (2023). Guidelines for
NUA Odisha. https://nua.skillodisha.gov.in/download/NUA_Odisha_Guidelines_Notified.pdf
17. Directorate of Skill Development cum Employment, Government of Odisha. (2024). https://dsde.
odisha.gov.in/en/pltp
18. Directorate of Skill Development cum Employment, Government of Odisha. (2024). https://dsde.
odisha.gov.in/en
19. Odisha Skill Development Authority. (2024). Swakalpa. https://www.swakalpa.in/about
20. As per data procured from Directorate of Technical Education and Training, Government of Odisha,
May 2024
21. Skill Development and Technical Education Department, Government of Odisha. (2024). Annual
Activity Report 2022-23. https://sdte.odisha.gov.in/sites/default/files/2024-04/SDTE%20
Activity%20Report%202022-23.pdf
22. As per data procured from Directorate of Technical Education and Training, Government of Odisha,
May 2024
23. World Skill Center, Government of Odisha. https://www.worldskillcenter.org/en/sun/page/about-
organization
24. Ibid

116
25. Skill Development and Technical Education Department, Government of Odisha. (2023). Guidelines
for Nutana Unnata Abhilasha (NUA). https://odisha.gov.in/sites/default/files/2023-10/NUA%20
Odisha%20Scheme_1.pdf
26. As per information procured from Directorate of Employment, Government of Odisha, May-June,
2024
27. Apprentice Performance Dashboard, Government of India. https://app.powerbi.com/view?r=eyJrI-
joiYTkyNWI0OTYtZmU0OS00MzM4LTgyZWItMjk3MDcyNWQ0NjEzIiwidCI6IjcyNGI4ZWQxLTgxODMt-
NGNiOS1iNWIwLTFlZDY3YWZlYWNmMSIsImMiOjEwfQ%3D%3D
28. Skill Development and Technical Education Department, Government of Odisha. (2024). Guidelines
for Nano Unicorn Scheme. https://sdte.odisha.gov.in/sites/default/files/2024-03/Notification_
Guideline%20for%20Nano%20Unicorn%20.pdf

SECTION VI
1. Singh, M., Ray Chaudhury, R. and Mukherjee, A. (2023). Odisha Renewable Energy Potential Re-
assessment. International Forum for Environment, Sustainability and Technology (iFOREST)
2. Bhushan, C and Banerjee, S. (2023). Just Transition Framework for India: Policies, Plans and
Institutional Mechanisms. International Forum for Environment, Sustainability and Technology
(iFOREST)
3. Ministry of Mines, Government of India. (2024). National DMF Portal. https://dmfindia.mines.gov.in/
login

117
Notes
International Forum for Environment, Sustainability & Technology (iFOREST)
is an independent non-profit environmental research and innovation
organisation. It seeks to find, promote and scale-up solutions for some of the
most pressing environment–development challenges. It also endeavours to make
environmental protection a peoples’ movement by informing and engaging the
citizenry on important issues and programs.

https://iforest.global

120

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