Economics, by definition, is all about the allocation of scarce resources, upon which the community places competing demands. The socio-economic analysis provide as much information as possible about the nature of trade-offs , in terms of changes in community welfare (efficiency) and changes within the community itself (equity).

Social Impact Assessment (SAC) offers a basis to achieve more equitable outcomes by involving the community, anticipating negative and positive social outcomes, and helping to formulate a means of mitigating adverse impacts.

SAC introduces a flexible and participatory approach to decision making and can assist people in sharing control over the pace and direction of changes affecting them. The regional economic impacts such as changes in employment and income can provide an important input into the consideration of social impacts.

The socio-economic impacts of how a proposed development will change the lives of local community is examined. The indicators used to measure these potential implications include (i) changes in community demographics (ii) demand for public services, (iii) changes in employment and income levels andchanges in the aesthetic quality of the community.

Tharparkar district is spread over an area of around 20,000 square kilometres. Of this, over 9,000 square kilometres is identified coal-field having estimated reserves of around 175 billion tones of good quality lignite, suitable for power generation. A Chinese company is going to set up a 600 mw coal-fired plant at Thar. The feasibility study has been carried out and the geological and chemical study is underway.

From the time of the earliest announcement of a development project, attitudes towards the project is formed, interest groups and other coalitions prepare strategies, speculators may lock up potentially important properties, and politicians manoeuvre for position. Here the social impact assessment helps communities avoid creating inequities and encourage the positive impacts associated with development.

Development invites growth in new jobs in a community and draws new workers and their families into the community, either as permanent or temporary residents. When this occurs, the incoming population affects the social environment in various ways including increased demand for housing and social services (e.g., health care, day care, education, recreational facilities).

Because residents' needs depend on a wide range of variables (e.g., age, gender, employment status, income level and health status), the diversity of service needs are determined not only by the absolute size of the incoming population but also by the old and new populations' demographic and employment profiles.

As a result, a proposed development may have a significant impact on the community's ability to accommodate new residents and adapt to changes in the social environment for existing residents.

Assessing the magnitude and rate of population change has important implications for community infrastructure and service requirements and can play a major role in determining social impacts associated with the proposed development.

Thar region has a geographical area of about 22000 sq. km. Average annual rainfall ranges between 200 to 350 mm. Due to blowing of sand, silt, salt and shells from the sea through Runn of Kutch by south western wind. Sand hills, formed by these winds rise up to 100 meters height.

The alluvial deposits contain upper layer of fertile soil having high clay and silt in it. Due to better average annual rain fall in Nagarparkar which reaches 350 mm, the recharge of shallow ground water is quite high making the shallow wells feasible for irrigation purposes on small scale.

The shallow ground water in major portion of the area is fresh and fit for irrigation. The area is connected with national electric grid system. Irrigated crops like wheat and vegetable are grown on small-scale lifting water from the wells, using animate power sources. The area is well known for castor cultivation on rainwater. Thar does not have supply of canal water for agricultural purposes.

There is no major industry. Only units of ice factory, some carpet units and flour mills operate in the district. The urban centres of Tharparkar and their markets, though developed and expanded, have no central place of trade. The district is not rich in means of communications.

There is neither railway nor air services available. Six-wheel drive trucks are the only source of public transport playing on the non-metalled roads of the desert. The trucks meet the need to transport grain and daily necessities of life from and to Thar.

The settlements in the rural areas of the desert are very simple and to some extent similar with the huts found in Africa. These huts are built on mud plastered platforms and the conical roofs are covered with scrub and grass.

A narrow opening is left for entrance on a side. In urban areas particularly at Mithi, new buildings are cropping up between small dwellings and houses made out of wood, mud and stone.

Due to the lack of rainfall outside the monsoon season, farmers in Thar have seldom produced more than one crop per year. From time immemorial, Tharis have migrated along with their animals to the barrage areas in the dry season, or in periods of drought, to work as farm hands.

Resultantly this led to the introduction of a remittance economy in the desert and the mounting lack of interest in agriculture. Of the cultivable land in the district, about half is privately owned while the remaining is either 'gowcher' (communal grazing land) or belong to the state.

More than half the population have their own land with an average land holding of around 15 to 20 acres. The landless Tharis, work as 'haris' (share-cropper) on others land or migrate to work in urban areas.

Well over 90 percent of the Thari households own live stock. Other than sale of live stock, there are only limited opportunities for income generation in the desert but for the ones that do exist are in carpet weaving and the production of handicrafts. Women also help in producing handicrafts from weaving rugs from goat and camel skin and the extremely beautiful rallis that they embroider.

Tharparkar has a highly heterogeneous population. Until the early 1960 almost 80 percent of the population was Hindu, but in the war of 1965 and 1971 with India a mass exchange of population took place giving Tharparkar a Muslim predominance. The population is divided into 'three main classes, Rajputs, which include Muslim and Hindu tribes, Baloch and aboriginal Dravadian tribes.

The Tharis are honest, hard-working people and are very generous in hospitality. The gatherings between castes is largely restricted to men. The locale for such interactions being the "autak".

Each hamlet will have at least one "autak" situated a discrete distance beyond the thorn hedge of the family quarters. Failing an "autak" the nearest shady tree is designated for meetings with outsiders. Women largely communicate within their own caste, within which they marry exclusively.

Opportunities for meeting women of other castes become more restricted with higher status. Rajput women observe strict purdah (seclusion) while poorer Bajeer, Bheel, Menghwar and Kohli are freer to undertake their field tasks.

Demographic impacts associated with the project include the number of new permanent residents or seasonal residents associated with the development, the density and distribution of people and any changes in the composition of the population, (e.g., age, gender, ethnicity, wealth, income, occupational characteristics, educational level, health status).

To interact successfully in a development project, someone or some group will need to represent local peoples' collective interests. These can be informal or formal, but it is best if they have some legal standing, such as a community corporation or a non-governmental organization.

The members should be chosen on the basis of skills required, not just community status. The locals are required not to wait for a development project to come along. They should start organizing their own information/ideas now.

New project can be used to trigger the kinds of development projects local peoples desire to take place. To make the best of the project, it is important to be a part of it at all stages. If the project is potentially threatening to your livelihood or well-being, do not avoid it, get even more involved.

Estimating carefully what these effects will be is the best way to understand how the development project can be of benefit or can create damage. Expand your capacity by staying in touch with your community members, your neighbouring communities, outside experts, NGO support groups, and especially the proponent and government regulatory or enforcement agencies.

Development projects follow government rules or rules that are internal to the organization for carrying out the project. Be sure you know what these are, and how they work. Many of these rules will create a framework for your community to ensure the project gives the community the most benefit.

Unless you know about these, it is hard to take full advantage of the opportunity. Most development projects are exciting and of great benefit to the community and to individuals.

Occasionally something goes wrong. If your traditional or other rights have been disregarded, you must know what they are, and how to ensure you can retain those rights.

In addition, local agencies or officials should provide input into the process of assessing changes in the social environment that may occur as a result of the proposed development (e.g., providing estimates and information demographics, employment and service needs).