Major development projects always have an environmental impact. This is equally true of construction of large dams, roads, railways and industrial zones. Projects that offer more benefits and less adverse impact environmentally, economically and socially are considered good. Given the shortage of oil and gas and the lack of consensus on the construction of big hydropower projects, exploitation of Thar coal reserves is an attractive way of addressing the energy crisis in Pakistan. Thar coal project will not only bring development to the area in the form of new infrastructure and employment opportunities, it will also solve the energy crisis. However, some environmental and social issues related to the utilization of Thar coal have surfaced. These need to be addressed in the interest of the local communities. So far, mining activity is limited to one block. The issue of water waste disposal at Gorano depression has triggered a protest from villagers opposed to the construction of a pond to collect mine effluent. The villagers say the Gorano pond has adequate capacity only for receiving effluent from Block-II. They are not clear whether separate ponds will be built for each block and fear that the effluent will cause an environmental catastrophe. It is recommended that if possible, the effluent from all blocks be discharged directly into Left Bank Outfall Drain near Shadi Large by laying a drainage pipeline. The gradient between the coal field and the LBOD is favourable for gravity flow. It is feared that saline water ponding at Gorano may alter the ecology, morphology, biodiversity, groundwater hydrology, weather and soil composition of the area. Detailed research is needed on the impact of the saline water storage, seepage, contaminant, solute transport and evaporation. The possibility of using the water for bio-saline agriculture should be explored as salt concentration is believed to be suitable for many salt tolerant crops. An increase in the irrigated agriculture area it will not only improve the livelihood of the local population but also have a positive impact on the environment. Successful fish farming and aquaculture projects are already underway at the reservoir. Gorano has also become a prized eco-tourism site, which can not only attract tourists but also create economic opportunities for local communities. However, the salinity level of the water is very high and likely to increase with a higher rate of evaporation in dry and hot seasons. The pond has been created on 1,500 acres of land. It is situated in Taluka Islamkot of Thar district, some 30 kilometres from Islamkot Town. The use of groundwater from the mine area having a total dissolved solids value of about 5,000 parts per million can be considered for use in power plant and for drinking after reverse osmosis treatment. This will not only reduce flow into Gorano pond but also be more economical than bringing LBOD effluent for the purpose and treating it at Nabisar RO plants at an estimated cost of Rs 30 billion a year. Locals should be given priority in all jobs on the Thar Coal Field. Outsiders may be hired only for jobs requiring technical expertise not available in the area. Trees, shrubs, and grass along the roadsides and Gorano pond embankments should be planted using a trickle irrigation system. This will reduce wind erosion and silting of the pond. There is a need also to compensate the farmers who are likely to lose their earnings due to the construction of the plant. They may also be considered for mining jobs. To minimize seepage, the bed, and banks of the Gorano and Dukkar Chho ponds, if possible, should be lined with clay, geo-membrane or a soil sealant. Instead of conventional power plants, supercritical and ultra-supercritical coal-fired power plants should be used so as to minimize emissions (including carbon dioxide, sculpture, and mercury). The writer is a retired doctor of the Sindh Health Department