It had its genesis as far back as 1935. More than 65 years later on August 2, 2000, Parliament passed the Bihar Reorganization Bill creating the new state of Vananchal (Jharkhand). Thousands poured out into the streets of Ranchi to celebrate the occasion.

The state comprises eighteen districts that make up southern Bihar, richly endowed with mineral resources. Some major industries located in this region are established Tata companies like TISCO and TELCO and the Indian PSU, SAIL. The region that has only 35% of the state's population, thus far contributed two-thirds of Bihar's revenue.
With an area of 74,677 sq km the new state is bordered by Bihar, MP, Orissa and West Bengal to its north, west, south and east respectively.

Jharkhand is a Sanskrit word (jhar meaning shrub), later found in several Persian and Arabic inscriptions of the medieval period. As early as 1900, Birsa Munda first demanded the establishment of the Munda Raj. It was Jaipal Singh, the Oxford-educated, hockey captain of the gold winning 1928 Olympiad who articulated the demand for a separate state of Jharkhand. In 1935, he founded the Adivasi party that in 1949 became the Jharkhand party. In 1963, its alliance with the Congress support, led to a loss of support and identity in the region, where it had once reigned supreme.

In the 70s, several new parties emerged like the Jharkhand Mukti Morcha. These parties frequently split but the movement for a separate state gained widespread sympathy. The Jharkhand Autonomous Council that came into existence in 1993 fell far short of most expectations, as the demand for a separate state gained momentum. As parties supporting the movement like the BJP and the left parties (excluding the CPM) made electoral gains in the 90s, the dream of a state finally came to fruition, in August 2000.