The plant, owned by the Tata Group in the Indian state of Gujarat, was built with funding from the International Finance Corporation (IFC), a sister organization of the World Bank that specializes in development assistance.
The IFC says the plant, which has a capacity of 4,150 megawatts, uses advanced technology to improve efficiency, save fuel and reduce emissions while generating power for areas that are "chronically short of electricity."
But the fishermen and farmers who are plaintiffs in the case denounce the damage caused to marine fauna and the pollution of soil by coal dust.
The plaintiffs argue that the IFC failed to comply with its charter, which makes the release of funds conditional on compliance with environmental standards.
The case will be argued and judged in the next session of the Supreme Court, which begins in October.
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