India’s $80 Billion Coal-Power Ambition Threatens to Run Dry Amid Escalating Water Crisis

India’s dilemma is clear: Should it prioritize energy to fuel its growing economy—or protect the water essential for survival?

As the searing summer of western India peaks, residents of Solapur brace for their harshest days. Water, a lifeline already scarce, becomes a precious commodity. Taps in this parched region run dry for days at a time, leaving families scrambling for every drop. What was once a routine, every-other-day water supply has become a weekly hope.

The situation began to spiral in 2017 with the arrival of a 1,320-megawatt coal-fired power plant in Solapur, developed by state-controlled NTPC. The massive project provided electricity to growing industries—but it came at a steep cost. It tapped the same local water resources as the citizens, intensifying an already dire shortage.

Now, as India positions itself to invest nearly $80 billion into expanding coal-power infrastructure by 2031, a deeper crisis looms. According to a confidential government document reviewed by Reuters, 37 of the 44 new coal projects are planned for water-stressed or water-scarce regions. Despite India’s 1.4 billion population—17% of the world’s total—the nation possesses just 4% of global freshwater resources.

NTPC, India’s largest thermal power producer, is linked to nine of the proposed projects. The company admits that 98.5% of its water comes from stressed regions but says it is “striving toward conservation,” with recycling and treatment methods. However, it did not address questions about planned expansions.

India’s dilemma is clear: Should it prioritize energy to fuel its growing economy—or protect the water essential for survival?

Land First, Water Later

Energy experts say that land availability, not water access, guides decisions on where to build plants. Acquiring land is often easier in rural or marginalized areas where political resistance is weaker.

“They prioritize easy land, even if water has to be piped from far away,” explains Rudrodip Majumdar, professor at Bengaluru’s National Institute of Advanced Studies. India’s complex land laws can delay infrastructure projects for years, prompting developers to settle for convenience rather than sustainability.

Despite multiple inquiries, India’s federal power and energy ministries, along with Maharashtra’s state water authorities, declined to comment.

The irony is striking. While India has invested in solar and hydropower, coal remains its backbone. The COVID-19 pandemic and post-recovery demand surges prompted the government to double down on coal.

Former energy secretary Ram Vinay Shahi defended this shift: “The only abundant energy resource we have is coal. Between water and coal, we choose coal.”

Solapur’s Burden

In Solapur, this policy has taken a human toll. Rajani Thoke, a mother of two, says water dictates her daily routine. “On supply days, everything else stops—washing, storing, cleaning. We plan our life around water.”

The plant, approved in 2008 by then-Power Minister Sushilkumar Shinde, was launched in an area already designated water-scarce. Shinde maintains he negotiated fair compensation for farmers who gave up their land, saying the plant brought jobs and development. “There was nothing in Solapur then,” he claimed.

But the infrastructure never caught up. Water now has to be piped from a reservoir 120 kilometers away, increasing costs and raising the risk of theft and loss.

A forthcoming state groundwater report, seen by Reuters, reveals that irrigation demand in Solapur exceeds water supply by one-third. Yet the coal plant continues to operate—and expand.

Environmental expert Shripad Dharmadhikary of Manthan Adhyayan Kendra says such projects are politically popular in the short term, but the consequences emerge later. “People cheer when construction starts, but suffer once the plant runs dry.”

The Solapur plant, one of India’s least water-efficient, often runs well below capacity. Still, officials hope that demand will soon rise, even if it means greater water use. A municipal official, Sachin Ombase, acknowledged that population growth has outpaced water infrastructure.

Between Hope and Despair

For locals like Dharmes Waghmore, a small farmer near the plant, the struggle is real. “Developing my land would secure my future. But drilling a borewell is a gamble. What if there’s no water?”

Even industrial officials privately admit the project is unsustainable. But the political will remains strong, and government subsidies continue to flow.

A senior local official, Kuladeep Jangam, painted a grim picture: “No investor wants to come here. The lack of water neutralizes every other development.”

Since 2014, India has lost over 60 billion kilowatt-hours of electricity—equivalent to 19 days of national coal power—due to water-related shutdowns. Solapur is not alone.

Chandrapur: A Case Study in Conflict

About 500 kilometers northeast lies Chandrapur, home to one of India’s largest power stations. With a capacity of nearly 3,000 MW, the Chandrapur Super Thermal Power Station is both a powerhouse and a flashpoint.

Like Solapur, Chandrapur faces chronic water stress. During lean monsoons, plant units are shut for months. Yet an expansion plan is underway to add 800 MW of new capacity.

The source of water for the proposed expansion? Still unidentified.

Tensions reached a boiling point during the 2017 drought. Residents of Chandrapur city, who had relied on the Erai reservoir, protested water diversions to the plant. The standoff ended only after local lawmaker Sudhir Mungantiwar ordered the plant to allocate water for public use.

Ironically, Mungantiwar still supports the expansion. “We need new efficient units to replace outdated ones,” he said. But critics note that plans to retire two older 420 MW units have been postponed until at least 2031—following federal directives to meet growing demand.

Plant operator Mahagenco, a state-run company, did not respond to questions.

Anjali, a Chandrapur resident who lives near the plant, now fetches drinking water from a tap installed outside its gates. “We don’t complain,” she says. “We’re poor. We take what we can get.”

The Bigger Picture: India’s Resource Tug-of-War

India’s dependence on coal is rooted in accessibility and cost. Solar and wind are growing, but grid integration and storage challenges persist. Hydropower is limited by geography and ecological concerns. Coal, for now, remains the most bankable option.

But it is water—not coal—that is becoming the limiting factor.

According to the Centre for Science and Environment, Indian thermal plants consume twice the global average of water per megawatt. And as climate change intensifies drought cycles, the future of India’s coal infrastructure grows increasingly uncertain.

The cumulative effects are already visible:

• Shrinking agricultural yields near power corridors
• Increased internal migration due to failing farms
• Intensified local protests and social unrest

India’s coal ambitions may serve its industries, but at what cost to its citizens?

As April turns to May and the heat intensifies, families in Solapur and Chandrapur wait—not for electricity—but for the next tanker, the next bucket, the next drop.

And as billions of dollars pour into coal, they are left to ask: Who really owns India’s water—the people or the power plants?