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Mining in India has an ancient origin and mining industry occupies a special position in the countrys economy. The development of this industry is undoubtedly a milestone in the field of industrial development of the country. The mining industry has special features: the work is hazardous and the mining community living in relatively isolation from the rest of the population. First steps in the mining of coal in modern India may be said to have been taken during the thirties of 18th century. Among the minerals, coal-' the black diamond', as a generator of 80% of the steam and thermal electrical energy in the country enjoys a uniquely strategic position. The large portion of the labour force working in the coal mines of Odisha, plays vital role in any scheme of industrialization and the development of the country in general and state of Odisha in particular. Modern technologies, increased awareness and mining legislation enable coal required by the nation to be mined without destroying the natural environment, retaining the mine area safe for working with lesser harm. Increase in work efficiency depends on a sound industrial environment around mining area. Working in mines involves physical accident and blows, muscular and nervous strain, monotony, noise & workers efficiency largely depends on work zone air quality and ambient air quality, extent of Suspended Particulate Matter (SPM). Different physical environments, say, coolness, heat, dampness and noise also influence the efficiency of labour and can be measured for purposes of correlating conditions and results in output, accidents, lost time and turnover. Working conditions should be compatible with an employee's physical comfort which contributes to enhance the job satisfaction by maintaining the normal temperature, combating humidity, proper ventilation, illumination, noise at work place. Good and favorable working conditions and a congenial working environment make the workers adaptable both physiologically and psychologically. Long hours of work and poor working condition sap the vitality of workers, render them inefficient making them physiologically unwilling to work. Hence a supportive environment is a prerequisite to keep the physical and mental stress of the employee at its minimum. In this paper we have tried to correlate the industrial environment of the coal mines to the workers efficiency and its impact on the performance of the industry and socio-economic conditions of workers. Though the Indian coal industry has been given a wide look, a special study has been carried in the Mahanadi Coal Fields in the Jharsuguda district of Odisha & stress has been given on three aspects like industrial environment, working condition & occupational hazards.'