Introduction

Traditionally, coal has been the key resource contributor and the primary source of supply for commercial energy in India. Coal has the largest domestic reserve base amongst Indian fuel sources like oil and natural gas and contributes to 55 percent of India’s total commercial needs.

Coal resources can be classified into two different categories—coking coal and non-coking coal (thermal or steam coal). It is estimated that 87 percent of India’s reserves are of the non-coking or thermal coal variety. Indian thermal coal is of high ash, low sulphur and low calorific value that is largely used for thermal power generation.

Coal reserves in the country are concentrated in the eastern region. While total reserves, as per the Geographical Survey of India (GSI) as on Jan 2006 were around 253.30 Billion Tonnes—the eastern region accounted for almost 65 percent of the total reserves, the central region accounted for around 16 percent, while the western and southern regions accounted for 11 percent and 7 percent of the reserves respectively.