The study aims to examine the sustainable livelihoods framework (SLF) of local people in Talcher coal mining in Odisha. The study used five types of capital such as human, social, financial, physical and natural. The Herfindahl Hirschman index has been used to differentiate income diversification in mining villages and control villages. The backwards step-wise multiple regression model has been used to show the relationship between expenditure and different socio-economic variables in the mining villages. The Mining has a positive footprint on physical capital. But it has detrimental effects on natural and mixed effects on human, social and financial capital in the mining villages. The Herfindahl index and multiple regression models revealed that mining has a positive influence on the livelihoods of people in the mining area. There is more livelihoods diversification in the mining villages than in the control villages. The standard of living and income has increased in the mining villages. There are some challenges faced by the mining communities such as job insecurity and livelihoods insecurity for their children. The adverse impact of coal mining on livelihoods can be minimised by controlling environmental degradation through rigorous monitoring. Further, there should be proper coordination between the state government and coal mining companies to provide benefits to the affected communities and conduct different training programmes on driving, computer training and tailoring to people who not engaged in mining activities. Institutional farsightedness is required to ensure sustainable livelihoods for local people.
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