Coal transport by railways has clear advantages over road transport for longer run but it is not too free from associated environmental impacts such as ambient air well as soil pollution in vicinity of coalfields and siding areas. Present study systemically investigated the ambient atmospheric pollution using comprehensive monitoring and analyses of the air pollutants, their statistical behaviors, and estimation of the role of transportation mode for the evacuation of coal in two different coalfield areas. The meteorological parameters such as temperature, humidity, wind speed, and wind direction were collected together with particulate matters, gaseous pollutants and trace metals. The potential contributors were analyzed using principal component analysis. The association between particulate matters of different sizes was also explored using linear regression analysis. The bipolar plot is used in this study to examine the role of wind speed and wind direction on dilution of the pollutant concentration. We also developed an aggregate Air Quality Index, commonly used to indicate the level of severity of air pollution to the public, based on the combined effects of considered pollutants was taken into account the Indian coal mine standards. Results revealed that Kaniha area, dominated by rail transport, is more polluted than Kulda area having road way as main mode for coal handling and transport. Thus railways pose specific challenges i.e. transportation of in-pit coal through road to railway siding and then loading and unloading at rail siding and requires further mitigation measures to make the railway transport as the appropriate choice for similar future projects like introduction of in-pit conveyor to silo loading system.