Mining activity creates tremendous pressure on local flora and fauna particularly where diversion of forest land takes place for mining purposes. The effect of mining on ground water level, silting of surrounding water bodies and land are also great concern. Coal mining contributes largely towards economic development of the nation although it has a great impact upon the human health. It also has its impact on socio-cultural aspect of the workers and people residing in and around coal mining areas. Thus a holistic approach for taking up to mining activities, keeping in mind concerns for adjoining habitats and ecosystem, is the need of the hour. This requires identification of various sites where minerals exist and various factors ranging from appropriate angle of slope of overburden dumps, safe disposal drains, and safe techniques to various silt control structures etc. In India Coal companies are now working towards “clean coal” strategies, which aim to reduce environmental impacts. The reduced ash contents of the washed coal increase the thermal efficiency of combustion. Which in turn make a direct impact on reducing emission of pollutants. However the coal washing requires extra water and it can turn towards a pollution free society.