Coal Industry is the world’s third largest in terms of production and fourth
largest in terms of reserves. Around 70% of the total production is used for
electricity generation and the remaining by the steel, cement and other heavy
industries. Coal is also used as fuel for domestic purposes.
having one of the largest reserves, the Indian coal industry does not hold a
position in the league of global energy suppliers. This can be attributed to
the soaring domestic demand. A study conducted by the Indian Planning Commission
and the Coal Ministry revealed that India’s total coal consumption was expected
to increase from 510 mts in 2007-08 to 550 mts by 2008-09.
this requirement, substantial public investment is needed. Even the private
players would need to deploy advanced mechanisms to increase production levels.
Recent reports say coal industry in India is facing problems because the coal
reserve is on decrease and India might have to import coal from outside.