Pollution in large facilities like coal-fired power plants can feasibly be controlled using technology that cannot be miniaturized and fitted to the tailpipe of every car.
Coal is not good for the climate, but coal-fired electricity using best available emissions control technology is far, far better for public health and air quality than internal combustion vehicles.
Please lookup charts of air pollution in the world, there are multiple smaller cities of India which are manufacturing hubs and on the list.
There is nothing called controlled pollution. And even if there is a technical feasibility like Carbon Capture and Storage it is not enforced.