Panderkanali south  was previously part of the Panchayat called Parsia. The Panchayat is located in Chota Nagpur Plateau. The entire Panchayat have run through by coal minerals. The region is inhabited by several tribal and cast communities residing since ages. Prior to the independence the regions was part of Purulia (as known as Manbhub Distric). Kudmi were the traditional rulers of this  land. The land remained unexplored until the Mughal emperor Akbar came into power in 1556 A.D. After the succession of Akbar the region became part of Mughal empire. Later in early 18th century, the region was included in the British controlled district of Manbhum (Purulia). The city has been part of Southwest Frontier Agency under the British rule for a long time. Later in 1854 the name Southwest Frontier Agency was changed to Chota Nagpur.

The early history of the greater part of the Chotanagpur plateau is shrouded in mystery and that of Dhanbad district is particularly so. Details of even later periods are difficult to trace as the present district formed but a small and insignificant part of Manbhum. In the Settlement Report for Manbhum (1928) it has been stated that no rock inscriptions, copper plates or old coins were discovered and not a single document of copper plate or palm leaf was found in course of the Survey and Settlement operations. The oldest authentic documents produced were all on paper and barely even a hundred years old.

In view of these circumstances the District Gazetteer for Dhanbad (1964) merely reproduces the chapter on history in the Settlement Report of 1928 which pertains to the entire district of Manbhum.

It was a small village of the erstwhile district of Manbhum which had its headquarter in Purulia (now in West Bengal). Manbhum in turn, derived its name from Raja Man Singh who was gifted this territory by Emperor Akbar , following his victory in a certain battle. The district being extremely vast and far-flung soon got divided into Birbhum, Manbhum and Singhbhum, for administrative purposes.

The McPherson Committee formed by Govt. of India, recommended the establishment of an institution for imparting education in the fields of Mining and Geology, whose report, submitted in 1920, formed the main basis for establishment of the Indian School of Mines, Dhanbad.

The Indian School of Mines was formally opened on 9th December 1926, by Lord Irwin, the then Viceroy of India to address the need for trained manpower related to mining activities in the country with disciplines of Mining and Applied Geology. In 1967 it was granted the status of a deemed to be university under Section 3 of UGC Act, 1956. Since its establishment, IIT(ISM) has undergone considerable expansion of its activities, and presently it can be considered as a total technology education institute.

Mining & Coal Production in Panchayat

The Barakar coal company and BIRD are establishment by british rule under this panchayat and also an cock plant and that time so many labour come from out side of up and bihar. The coal company populate the labour colony in panderkanali and new drip area.