Power generating units require huge capital investment and natural resources like fossil fuels and large amounts of water, causing significant environmental and health impacts. Several thermal power projects in Karnataka were identified for private sector participation. Coal-fired power plants emit various pollutants like carbon dioxide, sulfur and nitrogen oxides, mercury, and particulate matter. Fly ash from these plants contains toxic heavy metals that can pollute water and soil if not properly disposed of. The impacts of coal-fired power plants on local communities, wildlife and the environment need to be carefully considered. Alternative clean energy sources like hydropower, solar and wind could help reduce these impacts.