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India’s $80bn coal-power boom faces severe water shortage

As temperatures rise in Solapur, a drought-prone area in western India, residents are enduring an agonising wait for water as a 1,320-megawatt coal-fired power plant operated by the state-controlled NTPC has begun using the same reservoir that supplies the district, according to Reuters.

India, home to 17% of the world’s population but only 4% of its freshwater, is investing nearly $80 billion in new coal plants by 2031, many in its driest regions.

A confidential power ministry document reviewed by Reuters reveals that 37 of 44 planned coal projects are in areas classified as water-scarce or stressed. NTPC, which sources 98.5% of its water from such regions, is involved in nine of them.

Power executives, officials, and analysts warn that this expansion risks escalating conflicts between industry and communities over dwindling water supplies. NTPC claims it is striving to conserve water in Solapur through treatment and reuse but did not comment on expansion plans.

The power ministry stated that plant locations depend on land and water access, with state governments responsible for allocations. However, land, not water, often dictates site selection, according to Rudrodip Majumdar, an energy professor at Bengaluru’s National Institute of Advanced Studies.

They look for areas with easy land availability – minimum resistance for maximum land – even if water is available only far away.

Former Power Minister Sushilkumar Shinde, who approved the Solapur plant in 2008 despite its “water-scarce” status, defended the decision, citing jobs and investment. Local authorities blame mismanagement for shortages, while critics argue politicians prioritise flashy projects over long-term consequences.

The Solapur plant, delayed by water shortages before its 2017 launch, remains one of India’s least water-efficient. It draws from a reservoir 120 km away, a costly and risky arrangement, experts say. Meanwhile, a state survey warns irrigation demand in Solapur already exceeds supply by a third.

Water scarcity forced Indian coal plants to suspend operations, costing 60.33 billion units of lost generation since 2014, which is equivalent to 19 days of supply at current levels. The massive Chandrapur plant, in another water-stressed zone, frequently shuts units during droughts. Despite this, it plans an 800 MW expansion, though no water source has been secured.

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