Coal mines have affected the livelihood of the indigenous population of Korba district of Chhattisgarh. In order to minimize the adverse impact of mining, the mining company provided compensation to the project affected people. The outcome of this compensation on the life of local population has been studied by measuring their capital endowment. The Sustainable Livelihood Framework has been used to carry out the study in 2 villages near the coal mines, one that is compensated and rehabilitated, and the other which is yet to receive compensation and rehabilitation. The household level primary data has been collected in these two villages during the period of March 2022 to May 2022. The result shoes that there is an increase in Physical, Financial and Human Capital in Rehabilitated village as compared to the Transitional village primarily due to the monetary and non-monetary compensations. But there is a decline in the Natural capital in the region especially due to air pollution caused by the open-cast mining.
Key words: Compensation, Open-cast coal mines, Sustainable Livelihood Framework.