Indian 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.
Despite 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.
To meet 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.
