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India’s coal-bearing areas should be assessed not only for environmental impacts but also for those on health, experts said at the launch of a new report recently.
This is important as coal will remain an important part of India’s energy system in the future too, despite the country moving towards non-fossil fuel, renewable sources through a ‘just transition’.
“We believe that all coal fields should be assessed not only for environmental impacts but also for the health impacts on people living in those areas,” said Shripad Dharmadhikari, founder-coordinator and researcher of non-profit Manthan.
“It is very important that after mining in coal areas, proper pollution-prevention (remediation) and environmental restoration is done at those sites,” Dharmadhikari said while releasing Regulating Coal Operations: Environmental and Social Impacts through the Lens of the National Green Tribunal by non-profit Vikalpa at the India International Centre on August 26, 2025.
The document analyses eight separate cases filed in the National Green Tribunal (NGT) on various issues in the coal sector. This included coal transportation, storage, fly ash management and wastewater disposal. The lead authors are Dharmadhikari and Kush Tanwani.
The report, released in a roundtable discussion, said coal and lignite-based capacity accounted for 73 per cent of India’s total power generation in 2022-23. It is expected to remain at around 50 per cent by 2031-32. Coal-based power generation will thus remain the dominant energy source in India for the next several decades.
Meanwhile, serious challenges will remain regarding environmental effects as thermal power plants directly cause air, water and noise pollution as well as land degradation. Coal mining also has indirect impacts, including degradation of water, land, forests and biological habitats, and social displacement.
Given these serious impacts, it is essential that coal-based power generation is done in a manner that does not negatively impact the environment and the health and livelihoods of affected communities. However, experience so far shows that this is a difficult task. Existing legal frameworks are designed to regulate these impacts. However, their implementation lacks effectiveness and often does not include the voices of affected communities.
According to the report, the cases filed in NGT clearly show that storage, transportation and uncontrolled dumping of coal resulted in serious dust pollution, contamination of water bodies and safety hazards. Coal trucks have caused poor road conditions and dust has led to PM10 levels being five times higher than acceptable limits (460 μg/m3).
Improper disposal of fly ash has resulted in poisoning of water bodies and agricultural land, depletion of soil fertility and loss of biodiversity. Incidents of ash dyke breaches have destroyed agricultural land and fishery resources. In Tamil Nadu’s Ennore, fly ash clogged the local river, canal and floodplains, leading to waterlogging and flood risk.
In addition, fly ash containing silica increased the risk of silicosis, cancer and neurological diseases. Cadmium and lead were found to cause high cancer risk in children and adults in the Ennore area. Heavy metals were found in fish, causing health impacts on consumers.
Traditional livelihoods were also affected. Agriculture, fisheries, animal husbandry were the most affected. The affected people had to bear the double burden of health expenses and income loss.
These cases filed in NGT also revealed regulatory failures. In many cases, there was a serious lack of pollution control and compliance with rules. For example, Ennore’s thermal plant manipulated emissions data and consistently polluted above permissible limits. Participation of affected communities was almost negligible, highlighting the lack of accountability.
The report found that the compensation imposed by the NGT on polluters was not properly calculated. For example, in the Mejia case, the joint committee calculated Rs 16.1 crore, which was increased eight times to Rs 128.56 crore. But NGT rejected it and fixed interim compensation of Rs 20 crore, of which Rs 7.92 crore was given to farmers and Rs 12.08 crore for restoration work.
Similarly, in the Chandrapur case, an interim compensation of Rs 5 crore and an additional penalty of Rs 1 crore every month was imposed. However, in many cases the compensation is pending due to challenges in the high courts. In some cases, the money did not reach the affected communities. The NGT has repeatedly reiterated the principle that compensation should be based on absolute liability.
At the same time, the report shows that in many cases, the NGT has considered environmental restoration and cleaning as mandatory. For example, in the Sonbhadra case, a joint committee was directed to make a plan to repair the damage caused by coal dumping. In the Mejia case, the joint committee was asked to fix the restoration cost and make a plan in consultation with the affected parties. An amount of Rs 12.08 crore was set aside for restoration.
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