India plans roughly $80 billion in new coal-power projects by 2031. Many shortlisted projects are located in water-stressed areas, raising concerns that India’s aggressive thermal expansion could ignite conflicts between industrial needs and public survival. Operators often prioritize land access, pushing water availability into the background—fueling a looming crisis.

A Booming Power Ambition, Built on Parched Land

India, the world's most populous country, is pursuing an ambitious coal-power mission to fuel its growing economy and industrial needs. By 2031, it plans to invest nearly $80 billion in new coal-fired power projects. However, there's a glaring oversight in this strategy: water—a basic requirement for thermal plant operations—is running dangerously low in many of the selected regions.

A confidential shortlist from India’s power ministry reviewed by Reuters reveals that 37 out of 44 upcoming coal projects are situated in water-scarce or water-stressed zones. State-run energy giant NTPC, responsible for nine of these projects, draws over 98% of its water from already-stressed regions, underscoring the fragile nexus between coal expansion and water scarcity.

This is not just a policy miscalculation; it’s a potentially explosive conflict between industries hungry for power and citizens desperate for water.

Thermal Plants Favour Land, Forget Water

India’s thermal power planning often puts land acquisition ahead of water logistics. Experts and government officials interviewed for the report say developers choose areas where acquiring large tracts of land is easier—regardless of whether water is readily available.

“Between water and coal, preference is given to coal,” admits Ram Vinay Shahi, a former top energy bureaucrat. With India’s per-capita electricity consumption still lagging far behind China, the government has chosen coal as the cornerstone of its energy security strategy—even if it means stretching limited water resources.

But the result is a Catch-22: new power plants boost electricity supply but can leave entire districts thirsting during the dry season. Nowhere is this more evident than in Solapur, Maharashtra.

Solapur: The Cautionary Tale of Power vs. People

Before NTPC’s 1,320 MW Solapur thermal plant started operations in 2017, residents recall getting water every other day. Today, during peak summer months, taps may remain dry for over a week.

Local woman Rajani Thoke said her daily routine in summer revolves entirely around water: “On supply days, I do nothing but store water, clean clothes, and ensure we use it sparingly.”

Solapur’s woes began when NTPC built its coal plant in an already water-scarce region. The facility now pulls water from a reservoir 120 km away, adding logistical strain and potential for water theft. Despite efforts by NTPC to reuse water and apply conservation methods, Solapur ranks among India’s least water-efficient thermal stations, according to government data.

Ironically, while the plant was intended to jumpstart development in the region, the water crisis has discouraged further investment. “The lack of water neutralizes all other pull factors,” admits local official Kuladeep Jangam.

The Bigger Picture: Coal First, Consequences Later

Solapur is not an isolated case. Across India, thermal power generation has lost over 60 billion units since 2014 due to water shortages, equivalent to about 19 days of national supply. Facilities like the Chandrapur Super Thermal Power Station, also located in a dry region, are frequently forced to suspend operations when rains fail.

Yet, Chandrapur is preparing for an 800 MW expansion without securing a new water source. At the same time, plans to retire older, less efficient units have been delayed due to post-pandemic demand surges. This reflects a broader national trend: coal projects are moving forward despite not having secure or sustainable water strategies in place.

Residents in these regions are caught in the crossfire. Anjali, a Chandrapur resident, says she depends on a public tap near the plant for drinking water. “We’re poor, we make do with whatever we can get.”

What Lies Ahead: Water Wars or Policy Reform?

The tension between coal expansion and water scarcity raises urgent questions. If India continues to prioritize thermal plants in parched zones, how sustainable is this model? And more importantly, who will pay the price?

Environmental researcher Shripad Dharmadhikary points to a systemic flaw: decisions about infrastructure are often made with political mileage in mind, while long-term sustainability takes a back seat. “Problems come up much later,” he says.

India’s water management infrastructure is aging and, in many areas, not scaling with demand. Meanwhile, global benchmarks show Indian thermal plants consume twice the water of global standards, indicating inefficiencies that can no longer be ignored.

The central government’s push to delay retirement of inefficient thermal units until the decade’s end also runs counter to climate goals and water conservation efforts.

A Crossroads of Power and Survival

India stands at a critical juncture. Its aspirations to meet soaring energy demands through coal must now be balanced against the escalating water crisis. The current approach—favoring accessible land over water viability—is short-sighted and socially unsustainable.

The real cost of this $80 billion coal push may not be measured only in rupees, megawatts, or emissions, but in the daily hardships of citizens like Rajani and Anjali, who fight for every drop of water while the power plants around them roar to life.

Unless a course correction is made—one that integrates water sustainability into power planning—India may find itself locked in a self-defeating cycle, where power generation and human wellbeing are on a permanent collision course.

Balancing economic growth with resource equity isn’t just good policy—it’s an existential necessity.

(With agency inputs)