India’s $80 Billion Coal Push Faces Water Crisis in Drought-Prone Regions
Samira Vishwas June 10, 2025 11:24 PM

India’s ambitious plan to spend $80 billion on new coal-powered plants by 2031 is colliding head-on with a worsening water crisis, especially in regions already classified as water-stressed. In districts like Solapur, located roughly 400 kilometers from Mumbai, residents say water is now available just once a week in peak summer months—a stark contrast from a decade ago, when it flowed every other day.

The situation intensified in 2017 when NTPC launched a 1,320-megawatt coal plant that began drawing from the same reservoir as the local population and businesses. According to a confidential power ministry list reviewed by Reuters, most of India’s upcoming thermal plants—37 out of 44—are planned for similar water-scarce areas. NTPC, which acknowledges that over 98 percent of its water comes from such zones, is involved in nine of those projects.

Energy and water experts interviewed by Reuters warn that this strategy is unsustainable and may spark growing tensions between industrial demand and local communities. Despite these concerns, the government continues prioritizing coal, citing land availability as a key driver for plant location. Former energy secretary Ram Vinay Shahi emphasized coal’s importance to India’s power security, stating, “Between water and coal, preference is given to coal.”

Solapur residents, however, are already grappling with the consequences. Rajani Thoke, a local mother of two, said she has to organize her entire day around water availability. NTPC claims it is taking steps to conserve and reuse water, but the plant remains one of the least water-efficient in the country. Meanwhile, agricultural needs in the district outstrip water supply by one-third, according to a recent survey.

This problem is not limited to Solapur. The 2,920 MW Chandrapur Super Thermal Power Station, one of India’s largest, regularly shuts units during weak monsoon seasons. Yet plans are underway to add 800 MW of new capacity, even though a new water source has not been identified. Locals protested the plant during a 2017 drought, demanding water for homes rather than industrial use.

Despite India’s parallel investments in renewables, coal remains dominant in the energy mix. However, as water shortages continue to worsen, questions are mounting about the long-term viability of expanding coal power in regions already struggling with basic access to water.

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