Coal Mining and Rural Livelihoods: Case of the Ib Valley Coalfield, Orissa

Author(s): PRAJNA PARAMITA MISHRA

Source: Economic and Political Weekly , OCTOBER 31-NOVEMBER 6, 2009, Vol. 44, No. 44
(OCTOBER 31-NOVEMBER 6, 2009), pp. 117-123
Published by: Economic and Political Weekly

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Coal Mining and Rural Livelihoods: Case of
the lb Valley Coalfield, Orissa
PRAJNA PARAMITA MISHRA

This study analyses the diverse positive and negative The opening of a mine has several economic, environmen
tal and social consequences at the national, state or pro
impacts that coal mining has on the livelihoods of local
vincial and local levels. Mines not only create direct and
communities of the lb valley coalfield in Orissa. Using the
indirect employment opportunities, but also generate foreign
sustainable livelihoods framework, it shows that coal exchange earnings and tax revenues. New mining projects pro
mining, which is a form of physical capital, contributes to vide, in addition to business activities, basic facilities like
the enhancement of financial capital. It has a mixed roads, schools and health clinics to remote areas. Mining has
also a range of indirect impacts, positive and/or negative, on
impact on physical and social capital and a negative
the local communities and their livelihoods: It displaces them
impact on human and natural capital. In this situation from their own land; they could lose their homes, agricultural
while the benefits seem to be for the short term, the land and forest-based livelihoods; their natural environment
costs are borne over the long run. degrades day by day, creating air and water pollution; skilled
labour migrates to work in mines, creating tension between
the local people and the outsiders. Sometimes, the benefits
may be unevenly shared, or they may not compensate for the
loss of existing livelihoods and damage to environment and
culture (mmsd 2002).
Livelihood, in its simplest sense, is a means of gaining a living
and comprises the capabilities, assets and activities required for a
means of living. A livelihood is sustainable which can cope with
and recover from stress and shocks, maintain or enhance its
capabilities and assets, and provide sustainable livelihood oppor
tunities for the next generation and which contributes net bene
fits to other livelihoods at the local and global levels and in the
short and long term (Chambers and Conway 1992). Ellis (2000)
defines livelihood as that which comprises".. .the assets (natural,
physical, human, social and financial capital), the activities, and
the access to these that together determine the living gained by
the individual or household".
The impact of mining on the livelihoods of the local communi
An earlier version of this paper was presented at the conference on
ties is largely neglected. Often, all the benefits accrue to the min
"Managing the Social and Environmental Consequences of Coal Mining
ing industry and its workforce, depriving the rest of the popula
in India" organised by the Indian School of Mines University in asso
ciation with University of New South Wales and the Australian National tion in the locality. These populations bear only the costs, while
University at the India International Centre, New Delhi on 19-21 Novem the provision of benefit is lopsided.
ber 2007.1 am thankful to Kuntala Lahiri-Dutt and participants of the Coal mining in the lb valley coalfield in Orissa has affected
seminar for their comments. My fieldwork for this paper was conducted
the community in many ways: it has provided employment to
during January to May 2005 as part of my doctoral research, which
was funded by the Indian Council of Social Science Research and the
the people, it has provided basic facilities like roads, schools
Commonwealth Scholarship Commission, UK. I am grateful to my PhD and clubs; it has however caused air, water and noise pollu
supervisors V Ratna Reddy and D Narasimha Reddy for their insightful tion. The people have been displaced from their own land. To
comments and continued support. Thanks to Oliver Springate-Baginski, study these different impacts of coal mining on the livelihoods
Nitya Rao and S Galab for their valuable comments. I am indebted to
of the community, a livelihood approach - a way of thinking
the villagers of lb valley coalfield who contributed a lot to my research.
about the objectives, scope and priorities of development is
Prajna Paramita Mishra ([email protected]) is with the Research Unit
necessary. This research attempts to study the positive and
for Livelihoods and Natural Resources, Centre for Economic and Social
negative impacts that mining has on the livelihoods of the lo
Studies, Hyderabad.
cal communities in the lb valley coalfield, using the sustainable

Economic & Political weekly Q3S3 October 31, 2009 vol xliv no 44 117

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 livelihoods framework. The main research questions addressed upon which livelihoods are built. That is, people require a range
in this paper are: of assets to achieve positive livelihood outcomes. They are, hu
(1) How does mining influence the livelihoods of the local peo man capital, natural capital, financial capital, physical capital
ple? And what exactly are the benefits/costs of the mining and social capital. These different forms of capital are different
projects? forms of livelihood assets that the households can use to make
(2) How can benefits, and indeed, potential negative outcomes be a living.
assessed? Other agencies like the United Nations Development Pro
(3) Does mining support/provide sustainable livelihoods? gramme (undp), Oxford Committee for Famine Relief (oxfam),
This paper has been organised as follows: The first section and Cooperative for Assistance and Relief (care) have differ
describes the livelihoods framework. Section 2 is on study ent approaches to livelihood. The undp focuses on the impor
area, data collection and methodology. Section 3 discusses tance of technology as a means to help people rise out of pov
the impact of coal mining on livelihoods assets. These assets erty. The sustainable livelihoods agenda is a part of the organi
are five different types of capital. The last section answers sation's overall sustainable human development. This includes
whether this will lead to sustainable livelihoods in the lb val poverty eradication, employment and sustainable livelihoods,
ley coalfield. gender, protection and regeneration of the environment and
governance, care's basic emphasis is on household livelihood
1 Sustainable Livelihoods Framework security linked to basic needs. Its livelihoods approach focuses
Livelihoods thinking dates back to the work of Robert Cham on programmes which help the poorest and most vulnerable. It
bers in the mid-1980s, further developed by Chambers, Con places less emphasis on its framework and approach on struc
way and others in the early 1990s. In this study the livelihoods tures, and processes and macro-micro links. Oxfam, Great
framework was adapted from a model developed by the United Britain feels the need for a broad framework that could accom
Kingdom's Department for International Development (dfid modate issues of environmental change, together with the con
1999).1 This approach has largely been used in agriculture and cerns about globalising markets, gender and social inequality,
rural livelihoods projects, but its relevance to mining projects and the need to strengthen deprived people's participation in
has not been assessed. In its simplest form, this framework development process.
views people as operating in a context of vulnerability. Within Generally, the livelihood approach discusses how different
this context, they have access to certain assets or poverty forms of capital affect different livelihoods. In this study, the
reducing factors. These help them gain their meaning and influence of different livelihoods options, in general and min
value through the prevailing social, institutional and organi ing, in particular, on the five forms of capital is explained.
sational environment. This environment also influences the Then it is examined whether this mining, which is a source of
livelihood strategies - ways of combining and using assets - livelihood of the community, is leading towards sustainable
that are open to people in pursuit of beneficial livelihood out living or not.
comes that meet their own livelihood objectives. They all re
late the processes of change to the conditions in which peo 2 Study Area, Data Collection and Methodology
ple's livelihoods operate and the response of livelihoods to This study concentrates on the lb valley coalfield of Orissa.
these changes (dfid 1999). The state has two coalfields. One is Talcher and the other is
Coal mining influences all activities; the effects of these activi the lb valley coalfield. The state's inland area, where the
ties on the assets, in the form of five types of capital are studied. study area is located, is much less developed than the coastal
These assets influence policies and institutions and also get influ area. The whole region was underdeveloped before coal min
enced by them. Finally, they adopt different livelihood strategies, ing. With the nationalisation of the coalmines in the 1970s,
which result in diverse livelihood outcomes. The livelihoods mining operations accelerated, and consequently developed
frameworks identify five core asset categories or types of capital the area.

Table 1: Key Features of Sample Villages_

Matures Mining Villages Control Villages

Ainlapali Bundia Chharla Lajkura_ Ubuda_Saletikra Tangarpali

Distance from near by mines (in km) 3_0_ _1_1_1_-_ -_
Total population _458 673_731_916 _ 1,112_ 522_1,056_
Social composition Mixed Mixed_Mixed Mixed Mixed_Mixed_ Mixed_
Total households (nos)_74_122_97_178__167_125_220_
Livelihoods Mine's employee Mine's employee Mine's employee Mine's employee Mine's employee Agriculture Agriculture
and day labourer and day labourer and day labourer and day labourer and day labourer and day labourer and day labourer
Infrastructure in villages High school club Primary school Primary school Primary school Upper primary Primary school Primary school
club school_
Electricity Available Available Available Available Available Available Available
Drinking water Tube well Village well _ Village well_MCL is providing Village well_Tube well Tube well
Social composition includes all categories: scheduled caste (SC), scheduled tribe (ST) and other backward classes (OBC). High school (up to class 10th), primary school (up to class 5th), upper primary
school (up to class 7th).
Source: Field Study.

Il8 October 31, 2009 vol xi.iv no 44 11923 Economic & Political weekly

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 The lb valley coalfield is spreadover two districts of Orissa - diversification among the
Jharsuguda and Sundargarh - covering an area of 1,375 sq km. The control villages. To compar
coalfield is named after the river lb, a tributary of the river Maha is used.
nadi. This coalfield is part of the Mahanadi Coalfields Limited
(mcl), a subsidiary of Coal India Limited (cil). This coalfield has 3 Mining and Livelihood Assets in lb Valley Coalfield
been divided into five areas comprising five underground and Coal mining started in lb valley area nearly a hundred years ago.
seven opencast mines. The five areas are Orient, lb valley, La The Himgir Rampur colliery has been in operation since 1909.
khanpur, Basundhara and Garjanbahal. The first three are lo Coal production increased with the starting of t opencast mines.
cated in Jharsuguda and the last two are located in Sundargarh. By 2001, coal mining was providing employment to 10,630 work
The coalfields of Sundargarh are comparatively new compared ers in Jharsuguda district (goo 2001).
to that of Jharsuguda. The older the coal mine, the more the All the five villages were very much there before mining ever
impact. Hence, the so coalfields of Jharsuguda were selected for started process.
this study. Prior to independence, agriculture and allied activities (ani
As coal mining began in this area nearly a century ago, it is mal husbandry, forestry and fishing) were the main sources of
difficult to go for a before and after comparison. Therefore, livelihood and employment in these mining villages. With chang
with and without comparison approach has been used. The ing times (for example, the advent of manufacturing units in the
sample consists of five villages situated near the coal mines vicinity), it is seen that the focus of the labour shifted from the
(called the mining villages)2 and two villages, which are away agricultural activities to non-agricultural employment opportu
from the coal mines (control villages) but belong to the same nities. For example, the Orient Company started a paper mill in
district (Table 1, p 118). Data were collected during January to Brajaraj Nagar (municipality of Jharsuguda), employing large
May 2005. Information was gathered with the help of a struc number of people. The Tata Refractory Limited (trl), started in
tured questionnaire. The households (hh) were selected using Belpahar (notified area of council of Jharsuguda) in 1958, and
the circular systematic sampling method. In total 360 house also provided an alternative source of employment to the local
holds, were selected, 260 from the mining villages and 100 people. In 1992, the lb thermal power plant had started operating
from the control villages. in this area. In addition, people were also engaged in small-scale,
In this study, the Herfindahl index has been used to measure cottage and handloom industries. Nevertheless, since 1982 coal
the income diversification among the different mining villages mining has become a major source of employment for the local
and also control villages. The Herfindahl index is a measure of people. The control villages existed before mining operations be
the size of firms in relationship to the industry, and an indicator gan. Agriculture was their main source of income. With uncer
of the amount of competition among them. It is defined as the tainty of rain and non-availability of irrigational facilities, they
sum of the squares of the market shares of each individual firm. have now shifted to non-agricultural activities, mainly wage
Formula: H = I (st2) ...(1) work in the construction sector. Nonetheless, the socio-political
Where sf is the market share of firm i in market. The Herfin conditions such as social networking, political influence of repre
dahl index (h), also known as Hernndahl-Hirschman Index (hhi), sentatives are not taken into account in the case of the control
has a value that is always smaller than one. A decrease in the villages. This is a limitation of this study.
Herfindahl index generally indicates a loss of pricing power and The livelihood approach is the first and foremost issue of the
an increase in competition, while an increase implies monopoly. people. According to this, people require a range of assets to
This Herfindahl index can be used in the diversification measure achieve positive livelihood outcomes; no single category of as
ment issues (Barrett and Reardon 2000). The diversification in sets, on its own, is sufficient to yield the many and varied liveli
dex is calculated as: hood outcomes that people seek. The framework identifies five
Dl = i-H ...(2) core asset categories or types of capital upon which livelihoods
where, H is Herfindahl index
are built. So it is interesting to study the impact of mining on the
The advantage of the Herfindahl
following five types of capital. index is its com
simplicity. Since its computation requires just sim
tic, it is easier to 3.1 Impact on
memorise Financial Capital
than the discrete appro
an integral that comprises
Financial capitalthe
denotes theGini (Barrett
stocks and flows of financial re and
2000). The Herfindahl requires
sources that people use to only knowing
achieve their livelihood objectives. In pos
because the square* of this
a study
zero share
it is observed that mining is always
has a positive impact on zero
fore, does not affect the sum. One does not have to
Table 2: Mean Household Income of Villages
full range of admissible assets, activities or incom
Villages MeanHH MeanPerCapita MeanHH
the population before calculates the one first
_jncome (Rs)*_ IncomeJRs)Herfin
Size (No)*
On the other theVillages
hand, Gini nearcoefficient
opencast (PC) mines 51,130 value 10,330var 5.05
number of zero-valued Villages
entries. near underground
So it(UG) is mines 61,020 12,402 5.2
important
Villages
full range of possibilities near OC+UG
before 49,020 10,280 4.78 the
estimating
Control villages 35,492
hold's Gini coefficient (Barrett and Reardon 8,505 4.44 200
* Mean comparison t test for mining and control villages significant at 5% level.
study, the Herfindahl index has
Source: Field Study. been used to study

Economic & Political weekly GEE3 October 31, 2009 vol xliv no 44 119

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financial capital. Table 2 (p 119) shows the difference between mining villages. Only in Ubuda and Bundia villages do more than
mean household income and mean per capita income in both 20% of the households have livestock. However, 34% of the
mining and control villages. Mean household incomes of the min households in the control villages are found to have livestock. As
ing villages are high in comparison to the control villages. In the agriculture is no more a primary source of income in the mining
mining villages, half of the sample households have a job in the villages, the extent of use of livestock and plough as productive
mines, giving them a higher level of income. In the control vil assets is also low. Similarly, some households in the mining vil
lages, people work as farmers or labourers. In the mining vil lages own pump sets, as they indulge in cultivation, while in the
lages, the casual labour in mines are paid Rs 50 per day, hence, control villages, this percentage is not much as their per capita
the same wage rate has been fixed for all other activities. This irieome is low.
situation is the same in one control village, Saletikra, as it is The percentage of households with tractors as a productive
closer to the town. asset is greater in the mining villages not only because they
The mean household income of villages near underground have greater purchasing power, but also because they are used
in mines and for other construction work. Most of the house
mines is the highest because most of the households of this vil
lage have a job in the mines. Villages near opencast mines have holds in the mining villages own television sets, while this
lower mean household income. In these villages, the mine number is comparatively less in the control villages. This per
workers relatively fewer in number. Some villagers, who have a centage is high in villages near ug mines, as the per capita in
job in the mines, are now staying in mcl quarters, and hence, come is high. The percentage of households owning a motorcy
do not contribute to the income of this village. The number of cle is higher in the mining villages than that in the control vil
people depending on agriculture is more in this village, and lages, as there is no transportation facility to the mining vil
this income does not significantly contribute to the mean house lages, and because of better income. As the Tangarpali village
hold income. The same is true in the case of villages, which are is near the state highway and the Saletikra village is near the
in the vicinity of both the opencast and underground mines. On district headquarters, the percentage of households owning a
the other hand, there is a big difference in mean household in motorcycle is comparatively less. Other assets include cars,
come in the control villages. Here, the wage rate is Rs 40 perjeeps and vans. In all the villages such vehicles are used for
day. The availability of employment opportunities is less in business purposes.
these villages. A comparison of the control villages with the Land is another important physical asset in rural areas. As
mining villages shows the extent to which mining has a positive agriculture is the main source of livelihood in the control villages,
impact on the financial capital. Table 3: The Herfindahl Index for Income Diversification

The sources of income considered here for determining the Villages Herfindahl Index Diversification

Herfindahl index include mining, agriculture, wage labour, busi Villages near PC _ 0.413106 0.586894
Villages near UG 9^26911_JMZ?0?9_
ness, government service and others. Diversification is defined as
the deduction of Herfindahl index from 1. The control villages Villages near OC+UG _ 0.407_392_ __ 0.592608
have more diversified sources of income than the mining villages Control villages 0.224236_0^5764
Source: Field Study.
(Table 3).
Table 4: Physical Capital (Percentage ofHHs Having Physical Assets) _
A village near underground mines is the least diversified, as
Particulars Villages NearQC Mines Villages Near UG Mines Villages NearQC+UG Control Villages
most of the households have a job in the mines, and so the people
do not need to look for other sources of income. The other two House 100 _ _100_99^_ _ 100
Livestock_16/19_22_9_52_34_
mining villages have comparatively more diversified income
Plough_24.76_JO_5.71 _41_
sources than the village near underground mines. Pujnpsets _ 12.38_12_761 _11
Tractors 2.85_ _2_0_ _1_
3.2 Impact on Physical Capital TV _ 56A9_ 82____58^9_42
Physical capital comprises the basic infrastructure and producer Fridge _ 3.80 _ 6__ 76]_ _ 14 _ _
goods needed to support livelihoods. The important components Motorcycle_37.14 _ _50_?3.33___I^L _
of infrastructure, which are usually essential for sustainable live Others _ 3.80 _ 0 _1.90 1 _
Source: Field Study.
lihoods are affordable transport, secured shelter and buildings,
adequate water supply and sanitation, clean affordable energy Table 5: Landholding in Sample Villages_ _
Cultivators Villages nearOC+UG Villages near 0C Mines_Villages near UG Mines Control Villages
and access to information. Here, mining has a mixed impact on Landless 91 74 33 44
physical assets. As the previous section shows, mining has a posi _j86.66)___(70.48)_(66)_(44)
tive impact on the annual income of the people. Hence, the Landholder 14 31 ~ 17 56
household's capacity to keep durable assets in home is also more _(13.33)_(29.52)_(34)_(56)__
Marginal 12 13 15 28
(Table 4).
(0.1-2.5 acres)_(UA2)_(12.38)_(30)_(28) _ _
All the sample households own houses, except for one house Small " "~2 ' iT ~~ 2 " 17" "
hold in the Lajkura village where the head of the household is a . (2.51-5acres) _(1.91)__ __(J0.4
widow, who lives with her only son in her relative's house. There Large" 0 " 7 " " 0 11
are fewer households having livestock in the mining villages than
(>5acres)_(0)_(6^66)_(0)__(11)
Figures in parenthesis show the percentage of households to total household
Source: Field Study.
in the control villages, as there is no land left for grazing in the
120 October 31, 2009 vol xliv no 44 QBB3 Economic & P

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this percentage of households with land is more. On the other to be rising gradually. Furthermore, coal mines store and radi
hand, in the mining villages, land is acquired by mcl for min ate a great deal of heat. As the whole area is now covered by
ing. So the percentage of households having agricultural land is coal, there are an increasing number of cases of gastritis
lesser (Table 5, p 120). and dehydration.
Infrastructural facilities are important for the integration of On the other hand, there are no major health problems in the
the remote areas. But none of the mining village have a pucca control villages. The free medical facilities provided by mcl are
road, except Lajkura. The roads to mining offices, colonies and available only for its employees. People with very low income
the ways in which coal is transported are very good, while in the are still in need of medical aid, as they cannot afford to visit
villages, there is no such facility. Not a single bus comes to these private doctors.
villages. While people earning a better income use bikes or cy Access to educational services and facilities can improve
cles, the only option for the poor is to walk. The situation is communities close to or around large mines. A mining com
slightly different in the control villages. While Tangarpali is a pany is often involved in the provision of educational facili
roadside village, and it is well-connected to other places, Sale ties. But in lb valley coalfield, mcl has not done anything for
tikra is away from the main road and does not even have a pucca educational improvement. In general, there is not much dif
road to connect the village to the main road. ference between the mining villages and control villages in
mcl provides free electricity to one village - Bundia. It has terms of literacy, except in one control village, Tangarpali. In
also constructed a community centre in Ainlapali and in this village, both the male and female literacy level is low in
Chharla, it has constructed a pucca road from the beginning to comparison to other villages. This is mainly due to the sched
the end of the village. In all these villages, there are a few gro uled tribe (st) population, which prefers work to education.
cery shops. Other assets like school buildings and anganwadi Their general belief is that since educated people are not get
centres have been constructed by the government in both min ting jobs it is better not to waste time in school. The mcl is not
ing and control villages. doing anything for the educational improvement of the mining
area. It is providing a school bus to Lajkura village only for the
3.3 Impact on Human Capital children of its employees. This shows the inequitable distribu
In the livelihood framework, human capital is taken as a liveli tion of facilities.
hood asset, or as a means of achieving livelihood outcomes. It The Centre for Action Research Training (cart) had con
represents the skills, knowledge, ability to work and good ducted training programmes for the people in Lajkura village
health that together enable people to pursue different liveli for five years. They provided training in driving, computer use,
hood strategies and achieve their livelihoods objectives. With making dolls and wall hangings. The Operation Research
the advent of mining employment opportunities, the living Group (org) was also working in the area for some time.
Table 6: Major Health Problems in lb Valley Coalfield Though people have been trained in a variety of skills and income
Villages^ No of HHs Affected Major Problems generating activities in the course of the project, market op
Villages nearto PC mines 32(30.47) Fever, TB, gastritis portunities have not been identified. The developed human
Villages neartoUG mines 21(42) Fever, skin diseases capital in the form of people's newfound skills is inappropriate
Villages nearto OC+UG 55 (52.38) Fever, skin diseases, gastritis and unused.
Control villages 8(8) None
Figures in parentheses show the percentage of households to total households.
Source: Field Study. 3.4 Impact on Social Capital
In the sustainable livelihood framework, social capital is taken to
Table 7: Displacement and Compensation
Villages HHs Displaced Compensation Received
mean the resources which people draw upon in pursuit of their
_ _ __^ _ _ _ _ Physical Monetary livelihoods objectives. The displacement of local communities is
Villages near UG mines 10(20) 10 6 a significant cause of social conflict associated with mining. For
Villages nearOC mines 44(41.90) 27 40 the sake of national development, the local communities lose
Villages nearOC+UG 16(15.23) 16 11 their land and livelihood. In addition to bearing the effects of
Percentage of households displaced is given in the parenthesis.
Source: Field Study. pollution, they are forced to relocate to a new settlement without
adequate resources. Compensation payments are not adequate
standards of the locality rise. Companies develop health facili
and the people are often helpless. This problem in lb valley area
looks different.
ties for employees and their families. However, these facilities
are not available to the larger community. This is the situation
Most of the people in the mining villages have been displaced
in the lb valley coalfield. The major health problems facedfromby their agricultural lands (Table 7). They have received physi
the villagers are fevers, gastritis, skin diseases, joint pain cal
andcompensation in terms of a job in the mines. The nature of the
tb (Table 6). There are also cases of weakness, cough and cold,
job they get is based on the educational qualification of the per
asthma and gynaecological problems. son. Initially, monetary compensation was granted at a rate of
Rs 20,000 to Rs 30,000 per acre. As the demand for coal-rich
In the sample households, it has been observed that people
working in ug were affected by tb, and the number of casesareas
of is rising, a new compensation rate has been fixed at
skin diseases is found to be rising. With the increase in coal
Rs 1,00,000 per acre. In Lajkura, five households have not re
production, the average temperature in the area is also found
ceived any monetary compensation, since they were displaced
Economic & Political weekly October 31, 2009 vol xliv no 44 121

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from their homestead land (they still stay in the house as it has The first impact is on water. There is an acute scarcity of water
not yet been destroyed). The mcl has given them only physical in all the mining villages, which gets more worse in summer. The
compensation. But the number of people being given physical groundwater level has gone down substantially and the tube
compensation is coming down gradually. These days, mcl is giv wells are not functioning in most of the villages. People depend
ing only monetary compensation for those displaced from land. on open wells, but in summer season they also become dry. For
Nevertheless, some households demand jobs in preference to bathing and washing, all villagers depend on the village ponds.
monetary compensation. After mining, the ponds have been filled with coal dust, mcl pro
The above discussion makes it clear that mcl has tried to vides water only to the Lajkura village everyday. To the Chharla
deal with compensation issues fairly. All married daughters and Ubuda villages, the company provides water only in sum
also got their share in monetary compensation, mcl did not mer, which, however, is not sufficient for the villagers. In the
give the total money to the patta3 holder. Every person who case of the control villages, there is no water problem as the
had a right to get a share was requested to present in the mcl panchayat has constructed well-functioning tube wells. In ad
office in order to receive their respective share. Though mcl dition, there are more than two ponds in both the villages. In
gave compensation to people who had lost their land, landless the mining villages, the number of ponds is fewer, as some ponds
people did not get anything. Moreover, they also lost accessi fall in the mcl area.
bility to common reserves - like forest lands, the common graz The major difference between the mining and control villages
ing lands and in some villages, the common pond - on which is not only in the quantity of drinking water, but also in its qua
they depended for their livelihoods. Now they are not getting lity. Rich households have their own wells, which they keep
anything. The monetary compensation and jobs in the mines covered in order to protect it from coal dust. They also use water
also led to social illness like alcoholism. There were many in filters to get good quality water. Only the poor suffer from the
stances, where people got drunk and missed their day's work. limited quantity and poor quality of water. The water level in
After remaining absent for days, they were suspended from the open wells is going down. Though mcl provides water in
work by the mcl and they had to take up lower graded jobs like summer, it is not sufficient. All the village ponds are filled with
working as daily labourers. However, after the establishment coal dust and they get all kinds of diseases by drawing on this
of mcl, local people's social network and connectedness has polluted water.
increased, which is a positive impact in terms of social capital. Another major impact of mining on these villages is air pollu
They unanimously put forward complaints to the company. tion. The temperature of this area is rising over the years because
When they have to complain about something connected with of the coal belt. Coal-loaded trucks cause great deal of pollution
the mining company's actions, all of them go together to the in the form of dust. The villagers have abandoned left cultivation
concerned officials. For any matter related to their village, they since mcl had occupied all their agricultural lands, and also be
work in unison. There are also cases where there is a differ cause of the scarcity of labour, as people earn more wages in the
ence between the rich and the poor, upper castes and lower mines than from agricultural activities. The villagers say, "sea
castes. But according to the village head, mcl is not providing sonal vegetables are now our dream. For everything we have to
any infrastructural facilities in the new area. Most of them depend on market". Presently, they do not have access to fresh
want rehabilitation in a new area since it is close to impossible vegetables, and livestock graze on contaminated grass, and there
to live in an area full of coal dust. Moreover, the area provided is therefore a decline in numbers.

by mcl for rehabilitation is very small, mcl had measured their According to the villagers, now even for a day they cannot
homestead area in 1980s, at the time when the mines started, wear white clothes. All their utensils and clothes get dirty with
and it is only now that they are providing area for rehabilita coal dust. The villagers say that they are inhaling more of coal
tion. But it is now more than 25 years and the number of family dust than fresh air. Blasting and vibration are other important
members in each house has increased tremendously. This issue problems in the mining villages. Machines in mines and coal
of displacement and rehabilitation is causing conflicts not only loaded trucks and dumpers make huge noise pollution. High
among fathers and sons, but also between brothers. Generally, blastings make cracks in the walls and roofs of even the new
the eldest son of the household gets a job in the form of com buildings with strong foundation. Collection of tendu leaves
pensation. This creates hostility among the other brothers. was an important source of livelihood for the tribal people. But
Therefore, it is seen that mining has both positive and negative most of their land is now filled with coal. They were also col
impact on social capital. lecting mahua4 in summer, but now mahua trees on the road
sides are filled with coal dust and they do not yield goo fruit.
3.5 Impact on Natural Capital The villagers have observed that both the quality and quantity
Natural capital can be defined as the stock of natural resources of the fruit have decreased. The situation is different in the
and environmental assets, including water, soils, air, flora, fauna, control villages. They have both pure water and fresh air. Agri
minerals, and other natural resources. For the rural people, culture is their main source of livelihood, and they also have
natural capital is important because they derive all or part of livestock and grazing land. There is no fear of blasting, and the
their livelihood from farming, fishing and collecting forest natural capital of their village is rich. Of all the five forms of
products. In lb valley coalfield, mining has its worst impact on capital the most severe impact of mining on these villages has
natural assets. been on the natural capital.
122 October 31, 2009 vol xliv no 44 DEES Economic & Political weekly

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4 Livelihood Outcomes: Is This Sustainable? The villagers also want mcl to hire them as casual labour in
The sustainable livelihood approach supposes that people need a stead of taking labourers through contractors, as the contractors
range of assets. Being rich in one form of capital, while having pay the labourers only Rs 50 a day, while mcl pays its casual
inadequate access to others is unlikely to lead to sustainable live labour Rs 90 a day. The opportunities for women are declining
lihood outcomes. In the case of coal mining, which is a form of day by day due to the destruction of forests on which most of
physical capital, there is no contribution towards the enhance them were dependent. They are bear a disproportionate share of
ment of human and natural capital, even though it has a positive the social costs and receive an inadequate share of the benefits.
impact on financial capital, and to some extent, on social capital. The government does not play any role here. The pollution con
Mining alone is not likely to provide sufficient physical capital to trol board does not visit any of the villages, the villagers are not
ensure development. Though coal mining seems to have a posi even aware of the existence of such a board.
tive impact on the livelihood of the neighbourhood, people in the One important advantage of using the sustainable livelihoods
area incur costs, socially and environmentally. With the advent framework is that it tries to understand rural livelihoods from
of coal mines, the economy and the standard of living of the com the perspective of the poor. This framework gives a clear picture
munity has considerably risen. However, this benefit is at the cost of mining and its impact on rural livelihoods. Another reason for
of their environment. Sometimes, it is seen that facilities are also taking this approach is that it stresses the need to think how de
distributed in an inequitable manner. When employees of the velopment activity affects people's livelihoods and not only about
mines are getting all the benefits but other people are only incur the outcome of the project. According to the approach, a project
ring costs, a social imbalance is created. is evaluated according to the contribution it makes towards
Institutions provide the social context within which livelihoods achieving beneficial livelihood outcomes. A development project
are constructed. Both formal and informal institutions mediate like coal mining in lb valley coalfield helps to be rich in one form
the attainment of sustainable livelihood (Carswell 2000). Institu of capital, while lagging behind in the others. With coal mining
tions provide the infrastructure and the means to support liveli the country is becoming resource-rich and the government is
hood strategies. Katona-Apte (1988) shows the vital role of earning good revenue. But the negative impacts in the form of
Grameen Bank in Bangladesh in providing credit to women which water, air and noise pollution, degradation in health and loss in
enables them to carry out different activities. agricultural production and displacement which affect the com
Conflict in and around mining operations usually stems from munities are not being taken into account.
poor governance. Sometimes the distribution of benefits is unjust Finally, the important question: is this moving towards sus
and sometimes the community opposes any mining activity on tainable livelihood? The benefits from mining are only short
their land. In case of the lb valley, mining started years ago. Not term. Once mining stops, what will happen to these villages?
a single person wants mining to be stopped. The villagers ac They will not have their jobs and their agricultural lands will
knowledge that mcl is providing employment at a wage higher not be in a cultivable condition. Therefore, mcl should try to
than agriculture. They have received compensation for their dis develop the area, taking into account the above perspectives.
placed lands. Still, they have some demands, that mcl needs to Benefits should be distributed in an equitable manner so that
pay attention to. These demands vary from village to village. In there is a positive effect on the livelihoods of the poor people.
Bundia, the villagers demand water, as they are facing acute It should make an attempt to minimise environmental degra
water shortage. In Lajkura, Chharla and Ubuda rehabilitation is dation by introducing new technology. Healthcare and other
more important. Ainlapali villagers ask for employment. Their infrastructural facilities should be provided to all the nearby
main demands are that they be provided with sufficient water communities in addition to the employees' families. Lastly, the
and that the blasting and dust to be reduced. According to the government should take the responsibility to ensure that the
villagers, the company attends to some of their complaints, while local communities too gain from the development that is tak
the others are ignored. ing place on their land.

NOTES _ a negative impact on human and natural capital. DFID (1999): Sustainable Livelihoods Guidance
In this situation while the benefits seem to be for Sheets (London: Department for International
1 This approach is also used by other organisations
like the International Fund for Agricultural Deve the short-term, the costs are borne over the long Development).
run.
lopment and Food and Agriculture Organisation. Ellis, Frank (1999): "Rural Livelihood Diversity in
2 In total five mining villages are selected. They Developing Countries: Evidence and Policy
are: one village near underground mines (Bun Implications", Natural Resource Perspective,
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3 Official land record. GoO (2001): District Statistical Handbook, Jharsu
CRSP (US: Cornell University).
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negative impacts that coal mining has on the Southern Ethiopia", IDS Working Paper No 117 Katona-Apte, J (1988): "Coping Strategies of Destitute
livelihoods of local communities of lb valley (Brighton: Institute of Development Studies Women in Bangladesh", Food and Nutrition Bulle
coalfield in Orissa. Using the Sustainable Liveli (IDS)). tin, 10(3), 42-7.
hoods framework, it shows that coal mining, Chambers, Robert and Conway Gordon R (1992): "Sus MMSD (2002): Breaking New Ground: Mining Mine
which is a form of physical capital, contributes tainable Rural Livelihoods: Practical Concepts for rals and Sustainable Development, Mining Mineral
to the enhancement of financial capital. It has a the 21st Century", IDS Discussion Paper - 296 and Sustainable Development (London: Earth
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