The main focus of the paper is to assess the land use/ land cover (LULC) change in northern Chhattisgarh due to industrialization using remote sensing and Geographical Information System (GIS). The impact was assessed using an information extraction method applied to temporal satellite data (LANDSAT and IRS scenes) in GIS domain. For assessing the impact on natural resources, the classification scheme was restricted to (1) Forest patches ((a) completely cleared, (b) partially cleared, (c) least affected), (2) Non-Forest ((d) completely changed, (e) least changed), (3) Industrial/Mining area, and (4) River. Over the three decades 22.22% of forests have been completely cleared and converted to industrial setup. Another 25% is completely cleared and 10% is degraded. Around 4% of agricultural area is totally affected due to industrial activity. Random assessment of plant distribution (Trees, Shrubs and Herbs) indicates significant changes in the herb distribution directly related to distance gradient form the industrial/mining setup. Visual recording, socio-economic survey and satellite data also helped in delineation of extent of environmental pollution in forest and non-forest areas. The paper presents methodology for the environmental impact assessment.