This study analyses the diverse positive and negative impacts that coal mining has on the livelihoods of local communities of the Ib valley coalfield in Orissa. Using the sustainable livelihoods framework, it shows that coal mining, which is a form of physical capital, contributes to the enhancement of financial capital. It has a mixed impact on physical and social capital and a negative impact on human and natural capital. In this situation while the benefits seem to be for the short term, the costs are borne over the long run.
