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India's Thirst For Power: How Coal Plants Are Draining Water-Starved Regions Like Solapur
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India's rising electricity demand is driving investment in coal power plants, causing water shortages in places like Solapur. Despite this, $80 billion will be invested by 2031
Growing demand for electricity in India, driven by rising population and industrialisation, is prompting the government to prioritise coal-based power plants due to the country's abundant coal resources. However, these thermal power plants consume a significant amount of water, creating water shortages for local residents and industries in the areas where they are established.
A notable example is Solapur in Maharashtra, where the installation of a coal-based power plant by NTPC in 2017 has led to severe water shortages during the summer. Prior to the plant's establishment, residents received a drinking water supply every other day, but now, in the summer, water is sometimes available only once a week. Similar situations are reported in other regions with coal-based power plants.
India faces a challenging dilemma: it houses 17% of the world's population but only has 4% of the global water resources. Despite this, the country plans to invest $80 billion in water-consuming coal-based plants by 2031.
According to the Ministry of Power, most of these new plants are proposed in the most arid areas of the country. Experts speaking to Reuters have warned that this thermal expansion could escalate conflicts between industries and local residents over water resources.
The Ministry of Power's list shows that 37 of 44 new projects are located in areas declared as water-stressed. NTPC, which sources 98.5% of its water from water-stressed regions, is involved in 9 of these projects.
India had attempted to reduce its reliance on coal before the Covid-19 pandemic but reversed this policy post-pandemic. The country has invested heavily in solar and hydro power, but water-intensive thermal power is expected to dominate for decades. Former power secretary Ram Vinay Shahi explained, 'The only energy source we have in the country is coal. So, coal is given priority over water."
Since 2014, India has lost 60.33 billion units of coal-based power generation due to water shortages, equivalent to 19 days of power supply at June 2025 levels. The Chandrapur Super Thermal Power Station in Maharashtra has faced similar issues, with many units shutting down for months due to insufficient monsoon rainfall.
Acquiring land for coal plants in India is challenging due to complex land laws. Consequently, the government and companies opt for locations where land is more readily available, even if these areas have water shortages or require water to be transported from afar.
'Companies choose areas where there are fewer hurdles in acquiring land—even if water has to be brought from far away. This happens because land availability remains the primary factor in decision-making," said Rudrodeep Majumdar of the National Institute of Advanced Studies in Bangalore.
Former Union Power Minister Sushilkumar Shinde, who played a key role in setting up the Solapur plant, argues that it provided employment to thousands and fair compensation to farmers for their land. He attributes current issues to local administrative negligence.
In Solapur, water shortages have intensified since the power plant's establishment. Local resident Rajni Thoke says that her entire day is devoted to securing water during the summer. 'When the water comes, I just focus on collecting water, washing clothes, cooking… everything else takes a back seat," she said. Whenever water flows into the local reservoirs and taps, the whole family reportedly gathers to fill pots, buckets, tanks and more.
Sachin Ombase of the Solapur municipality acknowledged that the water distribution system has not kept pace with population growth but asserts efforts are underway to address the problem.
NTPC told Reuters it is working to conserve water at the Solapur plant through technologies like recycling, treatment, and reuse, though it did not provide details on expansion plans. According to a May 2023 government report, the plant is one of the least water-efficient and has the lowest capacity utilistion.
First Published:
June 09, 2025, 19:28 IST
