Regulating Coal Operations
Kartavya Desk Staff
Syllabus: Energy
Source: DTE
Context: A new report titled “Regulating Coal Operations: Environmental and Social Impacts through the Lens of the NGT” was released on 26 August 2025 in New Delhi.
• It highlights that coal will remain central to India’s energy system for decades, making environmental and health challenges inevitable, and stresses the need to involve local communities and conduct health impact assessments in coal-bearing regions.
About India’s reliance on Coal
Why India Relies Heavily on Coal
• Energy Security Imperative: Coal constitutes over 70% of India’s power generation capacity (2022–23). Unlike imported oil and gas, coal provides relative energy sovereignty due to large domestic reserves (~350 billion tonnes).
• Industrial Backbone: Thermal power supports steel, cement, aluminium, fertiliser and railways. The cost-competitiveness of coal-based power keeps industry running amidst global energy volatility.
• Affordability & Infrastructure Lock-In: Coal-fired plants are cheaper to build and have long operational lifespans. Existing investments in railway transport, coal-handling infrastructure, and state utilities create “path dependency”.
• Employment Dependence: Coal mining sustains livelihoods for millions of workers in Jharkhand, Chhattisgarh, Odisha, and West Bengal. Political economy considerations make sudden exits difficult.
• Intermittency of Renewables: Solar and wind, while growing, face issues of grid integration, storage, and round-the-clock reliability. Coal continues as the “baseload” provider.
• Transition Challenges: Lack of adequate financing, technology transfer, and adaptation plans for workers and communities hinders rapid decarbonisation.
Environmental & Health Impacts
• Air Pollution: PM10 levels five times above permissible limit (e.g., Jharia, Ennore).
• Water Contamination: Fly ash leaks poison rivers and soil fertility.
• Biodiversity Loss: Mining destroys forests and wildlife corridors.
• Public Health Burden: Cases of silicosis, respiratory disorders, neurological damage linked to fly ash and heavy metals.
• Livelihood Disruptions: Agriculture, fisheries, and cattle grazing severely impacted, leading to poverty and out-migration.
Governance & Regulatory Concerns
• Weak Enforcement: Emission manipulation (e.g., Ennore plant).
• Inconsistent Compensation: Farmers in Mejia and Chandrapur received inadequate or delayed payouts.
• Neglect of FRA Rights: Tribal and forest dwellers often excluded from consent processes under Forest Rights Act (2006).
• Tokenistic Participation: Communities rarely represented in decision-making bodies.
Recommendations from Report
• Health Impact Assessments (HIAs): Must accompany Environmental Impact Assessments (EIAs) in coal regions.
• Community Participation: Local committees of villagers, NGOs, and experts to oversee restoration and monitoring.
• Continuous Monitoring: Independent audits of air, water, soil, and health indicators.
• Mission-Mode Restoration: Mandate MoEFCC and states to treat clean-up as priority.
• Just Transition Strategy: Incorporate social equity, livelihood diversification, and skill training into coal-phase-out plans.
Way Forward
• Diversify Energy Mix: Aggressive push for solar, offshore wind, and green hydrogen to reduce baseload coal reliance.
• Just Transition Fund: Dedicated financing to rehabilitate coal workers and support alternative livelihoods in mining states.
• Health-Centric Planning: Institutionalise Health Impact Assessments in project approvals.
• Stronger Accountability: Empower NGT and Pollution Control Boards with community oversight powers.
• Circular Economy of Coal Waste: Promote fly ash utilisation in cement, bricks, and road construction.
• International Climate Finance: Leverage G-20, Green Climate Fund, and Just Energy Transition Partnerships (JETP) to fund India’s transition.
Conclusion
Coal will remain a pillar of India’s energy architecture for the coming decades, but without community involvement, strict enforcement, and a just transition framework, its environmental and human costs will outweigh economic benefits. India must craft a strategy that simultaneously ensures energy security, social justice, and climate responsibility.