India’s $80 billion coal push threatens water access in dry zones

According to a Reuters report, India’s aggressive push to expand coal-fired power generation — nearly $80 billion by 2031 — is compounding an already dire water crisis in the country’s driest districts.

A majority of new coal projects are concentrated in areas already officially designated as water-scarce or under severe stress, raising concerns of future conflict between industrial operations and local communities over access to water.

One case illustrating the growing tension is Solapur in Maharashtra.

Once accustomed to receiving piped water every other day, residents now wait up to a week or more in peak summer.

This coincides with the commissioning of a 1,320 MW coal plant by state-run NTPC in 2017, which draws heavily from the region’s limited water sources.

Sites chosen for land, not water

According to a power ministry document reviewed by Reuters, 37 of 44 proposed thermal plants are situated in water-stressed or water-scarce regions.

These locations were chosen due to the ease of land acquisition, despite challenges in accessing water.

Federal groundwater board officials and energy researchers confirm that land availability, rather than water access, is driving site selection.

The Solapur plant, for instance, sources water from a reservoir 120 km away, significantly increasing operational costs and the risk of water diversion or theft.

NTPC is involved in nine of the upcoming projects. The company claims it uses treated and reused water in its Solapur facility and follows national efficiency norms.

Yet, federal records from May 2023 rank the Solapur station among the country’s least water-efficient.

India’s thermal plants, on average, use twice the amount of water compared to global standards, as per data from the Centre for Science and Environment.

Solapur’s low capacity utilisation further exacerbates inefficiencies, even as plant officials expect demand — and therefore water consumption — to rise.

Droughts already hitting output

The stakes are high. Since 2014, India has lost 60.33 billion units of coal power generation due to water shortages, equivalent to 19 days of supply at current levels.

The 2,920 MW Chandrapur Super Thermal Power Station, another major coal facility in Maharashtra, frequently shuts multiple units during weak monsoons. Despite this, Chandrapur is planning an 800 MW expansion, according to internal documents.

Notably, it has yet to identify a water source for the additional capacity, although coal supply arrangements have already been made.

Local tensions have flared in the past. During a 2017 drought, public protests in Chandrapur forced the redirection of power plant water to city residents.

Even so, plans to retire two old, inefficient units have been delayed by seven years following federal directives to maintain thermal capacity until the end of the decade.

Water stress deters growth

The pattern of water scarcity is discouraging local development. In Solapur, officials admit that poor water availability is negating the region’s appeal to businesses.

A forthcoming state survey suggests that irrigation demand already exceeds supply by a third, leaving little room for new industrial usage.

Farmers near Solapur are hesitant to invest in borewells due to uncertainty about future water availability.

Meanwhile, NTPC’s Solapur project, which cost $1.34 billion, continues to provide some employment and was politically supported for its economic promise.

Yet, water infrastructure in the district hasn’t kept pace with population growth, contributing to the long waits for water supply.

The broader picture shows a growing collision course between India’s energy goals and its finite water resources.

With the power ministry betting on coal to meet demand and renewables unable to fill the gap quickly enough, India’s water-stressed districts could face increasing competition between human survival and industrial supply.

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