Regulation of Coal Operations

28.08.2025

Regulation of Coal Operations

Context:

In August 2025, a report highlighted that coal will remain central to India’s energy system, emphasizing environmental and health challenges, the need for Health Impact Assessments, and active community participation in mining regions.

India’s Dependence on Coal

Reasons for Heavy Reliance

1. Energy Security: Coal accounts for over 70% of India’s power generation capacity (2022–23). Domestic coal reserves (~350 billion tonnes) provide energy sovereignty compared to imported oil and gas.
    
2. Industrial Support: Thermal power underpins key industries like steel, cement, aluminium, fertilisers, and railways. Coal-based energy remains cost-competitive amid global energy price volatility.
    
3. Affordability & Infrastructure: Coal-fired plants are relatively inexpensive to build and have long operational lifespans. Existing transport networks, coal-handling systems, and state utilities create a strong dependency.
    
4. Employment: Millions of livelihoods depend on coal mining, especially in Jharkhand, Chhattisgarh, Odisha, and West Bengal, making a rapid transition politically sensitive.
    
5. Renewables Limitations: Solar and wind face intermittency issues and require grid storage solutions. Coal remains the reliable baseload source.
    
6. Transition Challenges: Limited financing, technology gaps, and lack of social adaptation plans hinder rapid decarbonisation.
    

Environmental and Health Impacts

• Air Pollution: PM10 levels in coal towns like Jharia and Ennore exceed safe limits fivefold.
   
• Water Contamination: Fly ash seepage affects rivers and soil fertility.
   
• Biodiversity Loss: Mining disrupts forests and wildlife corridors.
   
• Public Health: Respiratory disorders, silicosis, and neurological problems have been linked to coal-related pollutants.
   
• Livelihood Disruptions: Farming, fisheries, and livestock are severely impacted, causing poverty and migration.
   

Governance and Regulatory Challenges

• Weak Enforcement: Manipulation of emissions at some power plants has been observed.
   
• Inconsistent Compensation: Farmers in mining regions often receive delayed or inadequate payouts.
   
• Neglect of Forest Rights: Tribal and forest communities are frequently excluded from decision-making under the Forest Rights Act (2006).
   
• Limited Community Involvement: Local voices are rarely represented in oversight or restoration committees.
   

Recommendations from the Report

1. Health Impact Assessments (HIAs): Should be integrated with Environmental Impact Assessments in coal regions.
    
2. Community Participation: Establish local oversight committees including villagers, NGOs, and experts.
    
3. Continuous Monitoring: Independent audits of air, water, soil, and health indicators.
    
4. Mission-Mode Restoration: Ministries and states should prioritise environmental clean-up.
    
5. Just Transition Strategy: Plans should ensure social equity, livelihood alternatives, and skill development for coal workers.
    

Way Forward

• Diversify Energy Mix: Expand solar, offshore wind, and green hydrogen to reduce coal dependence.
   
• Just Transition Fund: Provide financial support for worker rehabilitation and alternative livelihoods in mining regions.
   
• Health-Centric Planning: Institutionalise HIAs in project approvals.
   
• Strengthen Accountability: Empower NGT and Pollution Control Boards with community oversight powers.
   
• Circular Economy: Encourage fly ash reuse in construction, bricks, and cement.
   
• International Climate Finance: Leverage global funds and partnerships like the Green Climate Fund and JETPs.
   

Conclusion

Coal will remain central to India’s energy system, but sustainable energy, public health, and social equity require strict regulation, community participation, and a just transition balancing economic growth with environmental responsibility.