The 4000 megawatt coal-fired power plant in western India is operated by Tata Power and has been under a full compliance review by the World Bank for about a year, in response to a complaint lodged by local fishing communities against the coal plant.

Community members, including local fishers who claim their livelihood has been severely threatened by the coal plant's pollution, have formed an organization called MASS, or Machhimar Adhikar Sangharsh Sangathan – meaning “association for the struggle for fishworkers' rights”

MASS filed complaints to the World Bank Group's International Finance Corporation complaint mechanism, the Compliance Advisor Ombudsman.

The CAO is the World Bank arm conducting the review of both the social and environmental factors and will send the report to World Bank president Jim Yong Kim this week.

"While the World Bank’s IFC has already approved the project, the World Bank could respond to the very real issues, like mangrove destruction, loss of livelihoods, contaminated fishing and more, by compensating local communities and halting further disbursements to Mundra," MASS director Bharat Patel said.

"If Dr Kim and his executive team ignore the CAO findings it will show a lack of interest in protecting communities from dirty and outdated fossil fuels and undermine the strength of the new energy strategy."

Sierra Club international representative Justin Guay said the bank should discontinue funding the project and compensate communities for the destruction it had caused.

Kim’s response is expected on September 12.