NLC India Limited (formerly Neyveli Lignite Corporation, NLC) operates 3 opencast lignite mines and 4 lignite based pit head thermal power stations in Neyveli, in Cuddalore district of Tamil Nadu. The ITPCL (IL&FS TamilNadu Power Company Ltd.) operates a sea-water based power plant in the same district. Both NLC and ITPCL have had a history of serious social and environmental impacts in the area. To understand these impacts in a scientific manner along with bringing in the experiences of the local communities, a study was conducted by Poovulagin Nanbargal and Manthan Adhyayan Kendra in the Neyveli and Parangipettai regions of the district between Dec 2022 and July 2023. The study involved two rounds of sampling and testing of water and soil samples from the area, field observations as well as extended interviews with local communities.
The study has shown that the water sources in the area – including drinking and domestic use water, air quality and soil have all been severely affected by fly-ash, coal dust and high concentration of heavy metals in surface and groundwater due to discharge of mine water and effluents from the thermal power plants. This has led to serious health problems for local communities. It has also impacted health of livestock, and resulted in falling yields and quality of agricultural produce, all ultimately impacting livelihoods.Victims of land acquisition in Neyveli continue to suffer due to many outstanding problems like inadequate or no compensation, multiple displacement, lack of promised jobs, and loss of livelihoods. In Parangipettai, fishing communities are facing loss of access to traditional fishing route and reduction in the quality and quantity of fish, all affecting their incomes and livelihoods.
The study makes several recommendations for addressing these issues including monitoring and addressing the problems through a joint effort of NLC and ITPCL, affected communities, civil society organisations and independent experts.