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'''Coal in India''' has been mined since 1774 and is now the second fastest mined in the world, producing {{convert|716|e6MT|e6ST|abbr=off}} in 2018. In 2017, [[India]] had {{convert|315.14|e9MT|e9ST|abbr=off}} of [[coal]]. The estimated total reserves of [[lignite]] coal that month was {{convert|44.70|e9MT|e9ST|abbr=off}}. Due to high demand and poor average quality, India imports [[Metallurgical coal|coking coal]] to meet the requirements of [[Iron and steel industry in India|its steel plants]]. India's coal imports have risen from {{convert|49.8|e6MT|e9ST|abbr=off}} in 2007–08 to {{convert|191|e6MT|e9ST|abbr=off}} in 2016–17. India's coal exports rose from {{convert|1.63|e6MT|e6ST|abbr=off}} in 2007–08 to {{convert|2.44|e6MT|e6ST|abbr=off}} in 2012–13, but subsequently declined to {{convert|1.77|e6MT|e6ST|abbr=off}} in 2016–17. [[Dhanbad]] city is the largest coal producing city and is called the Coal Capital of India. State-owned [[Coal India]] had a [[monopoly]] on [[coal mining]] between its nationalisation in 1973 and 2018.

[[Coal-fired power plants]] have been criticised for breaking environmental laws,<ref>{{Cite web|title=India’s U-Turn on ‘Clean’ Energy Is a Bad Move|url=https://thewire.in/environment/coal-washing-environment-ministry-changing-rules|access-date=2020-06-16|website=The Wire}}</ref> and [[Coal phase-out|phasing out coal]] would have short-term health and environmental benefits greatly exceeding the costs.<ref>{{Cite web|url=https://www.pik-potsdam.de/news/press-releases/coal-exit-benefits-outweigh-its-costs|title=Coal exit benefits outweigh its costs — PIK Research Portal|website=www.pik-potsdam.de|access-date=2020-03-24}}</ref>

==History==
Coal in India was first mined in 1774 when John Sumner and [[Suetonius Grant Heatly]] of the [[East India Company]] commenced commercial exploitation in the [[Raniganj Coalfield]] along the Western bank of [[Damodar River]]. Growth remained slow for nearly a century due to low demand. The introduction of [[steam locomotives]] in 1853 boosted demand, and coal production rose to an annual average of {{convert|1|e6MT|e6ST|abbr=off}}. India produced {{convert|6.12|e6MT|e6ST|abbr=off}} of coal per year by 1900 and {{convert|18|e6MT|e6ST|abbr=off}} per year by 1920. Coal production rose steadily over the next few decades, and was boosted by demand caused by [[World War I]]. Production slumped in the [[interwar period]], but rose to {{convert|30|e6MT|e6ST|abbr=off}} by 1946 largely as a result of [[World War II]].

In the regions of British India known as [[Bengal]], Bihar and [[Odisha, India|Odisha]], the Indians pioneered Indian involvement in coal mining from 1894. They broke the previous monopolies held by British and other Europeans, establishing many collieries. [[Seth Khora Ramji Chawda]] of Sinugra was the first Indian to break the British monopoly in the Jharia Coalfields. Other Indian communities followed the example of the Kshatriyas in the Dhanbad-Jharia-Bokaro fields after the 1930s. These included the [[Punjabi people|Punjabis]], [[Kutchi people|Kutchis]], [[Marwaris]], [[Gujarati people|Gujaratis]], [[Sindhi people|Sindhi]]s and [[Hindustani people|Hindustani]]s. Following [[India independence|independence]], the Government of India introduced several [[India Planning Commission|5-year development plans]]. Annual production rose to {{convert|33|e6MT|e6ST|abbr=off}} at the beginning of the First Five Year Plan. The National Coal Development Corporation (NCDC) was established in 1956 with the aim of increasing coal production efficiently by systematic and scientific development of the coal industry.

The [[Second Indira Gandhi ministry|Indira Gandhi administration]] nationalized coal mining in phases – coking coal mines in 1971–72 and non-coking coal mines in 1973. With the enactment of the ''Coal Mines (Nationalization) Act, 1973'', all coal mines in India were nationalized on 1 May 1973. This policy was reversed by the [[First Modi ministry|Narendra Modi administration]] four decades later. In March 2015, the government permitted private companies to mine coal for use in their own cement, steel, power or aluminium plants. The ''Coking Coal Mines (Nationalization) Act, 1972'' and the ''Coal Mines (Nationalization) Act, 1973'' were repealed on 8 January 2018. In the final step toward denationalization, on 20 February 2018, the government permitted private firms to enter the commercial coal mining industry. Under the new policy, mines will be auctioned to the firm offering the highest per tonne price. The move broke the monopoly over commercial mining that state-owned [[Coal India]] has enjoyed since nationalisation in 1973.

===Pre-independence===
Commercial exploitation of coal in India began in 1774 with John Sumner and [[Suetonius Grant Heatly]] of the [[East India Company]] in the [[Raniganj Coalfield]] along the Western bank of [[Damodar River]]. The growth of Indian coal mining remained slow for nearly a century due to low demand. The introduction of [[steam locomotives]] in 1853 boosted demand, and coal production rose to an annual average of {{convert|1|e6MT|e6ST|abbr=off}}. India produced {{convert|6.12|e6MT|e6ST|abbr=off}} of coal per year by 1900 and {{convert|18|e6MT|e6ST|abbr=off}} per year by 1920. Coal production received another boost during the First World War due to increased demand, but slumped again in the early 1930s. Production reached a level of {{convert|29|e6MT|e6ST|abbr=off}} by 1942 and {{convert|30|e6MT|e6ST|abbr=off}} by 1946.<ref>{{cite web |url=http://www.coal.nic.in/abtcoal.htm |title=Coal Mining in India: The Past |publisher=Ministry of Coal, Indian government |access-date=22 August 2013 |url-status=dead |archive-url=https://web.archive.org/web/20130831225354/http://www.coal.nic.in/abtcoal.htm |archive-date=31 August 2013 }}</ref>

In the regions of British India known as [[Bengal]], Bihar and [[Odisha, India|Odisha]], the many Indians pioneered Indian involvement in coal mining from 1894. They broke the previous monopolies held by British and other Europeans, establishing many collieries at locations such as [[Jharia Khas|Khas Jharia]], [[Jamadoba]], [[Baliari|Balihari]], [[Tisra]], [[Katras]]garh, [[Kailudih]], Kusunda, [[Gobindpur, Jharkhand|Govindpur]], [[Sijua]], [[Sijhua]], [[Loyabad]], [[Dhaunsar|Dhansar]], [[Bhuli, India|Bhuli]], [[Bermo]], [[Mugma]], [[Chas]]nala-[[Bokaro Steel City|Bokaro]], [[Bhagatdih|Bugatdih]], [[Chhotaputki|Putki]], [[Chirkunda]], [[Bhowrah]], [[Sahnidih|Sinidih]], [[Kenduadih|Kendwadih]], and [[Dumka]].<ref name=Y>''Diary of Golden Days at Jharia – A Memoir and History of Gurjar Kashtriya Samaj of Kutch in Coalfields of Jharia'' – written by Natwarlal Devram Jethwa of Calcutta (1998).</ref><ref>{{cite book|title=Census of India, 1981: Bihar. Series 4|year=1981|publisher=Controller of Publications – Bihar|page=22|url=https://books.google.com/books?id=rbNHAAAAYAAJ&dq=gujarati+dhanbad+coal+railway&q=expert+contractor|quote=It was the existence of coal that first attracted the railway authority to extend the railways and with them came the Gujrati people as an expert railway contractor with an experience of railway construction work at Thana. They then met Raja of Jharia and purchased some having underneath wast wealth in shape of coal.}}</ref>

[[Seth Khora Ramji Chawda]] of [[Kutch]] was the first Indian to break the British monopoly in the Jharia Coalfields.<ref name=Y/><ref name=K>Encyclopedia of Bengal, Bihar and Orissa by British Authority (1920)</ref> Natwarlal Devram Jethwa says that {{quote|The East Indian Railway in 1894–95 extended its line from [[Barakar]] to [[Dhanbad]] via [[Katras]] and [[Jharia]]. Messrs. Khora Ramji in 1894 was working on railway lines contract of Jharia branch line and with his brother Jetha Lira was also building Jharia Railway Station, when he discovered coal in Jharia belt. The location of his three collieries named [[Jeenagora]], Khas Jherria, Gareria is mentioned also in 1917 Gazetteers of Bengal, Assam, Bihar and Odisha.<ref>{{cite web|url=https://archive.org/stream/bengalassambehar00playuoft/bengalassambehar00playuoft_djvu.txt |title=Gazetteers of Bengal, Assam, Bihar and Orissa 1917 Khora Ramji Colliries |access-date=2013-09-30}}</ref>}}Other Indian communities followed the example of the him in the Dhanbad-Jharia-Bokaro fields after the 1930s. These included the [[Punjabi people|Punjabis]], [[Kutchi people|Kutchis]], [[Marwaris]], [[Gujarati people|Gujaratis]], [[Bengali people|Bengali]]s and [[Hindustani people|Hindustani]]s.<ref name=Y/><ref>{{cite book|url=https://books.google.com/books?id=CbmyAAAAIAAJ&dq=khora+ramji+jharia&q=khora+ramji+#search_anchor |title=Khora Ramji Mines capsized in 1938 |date= n.d.|access-date=30 September 2013|last1=Simeon |first1=Dilip }}</ref><ref>{{cite book|url=https://books.google.com/books?id=_BcsAAAAIAAJ&q=khora+ramji&dq=khora+ramji |title=Jharia Coalfields: Khora Ramji, Narayan Chowra, etc |date= n.d.|access-date=30 September 2013}}</ref><ref>''India at a Glance: A comprehensive reference book on India'' by T. V. Rama Rao, G. D. Binani. Published by Orient Longmans in 1954 (Coal Mines Section)</ref><ref>''Indigenous Enterprise in the Indian Coal Mining Industry c. 1835–1939'', C.P. Simmons. Published in 1976.</ref><ref>''Report on the production and consumption of coal in India of 1921'' India. Dept. of Statistics (Superintendent Government Printing, 1921 – Technology and Engineering).</ref>

===Post-independence===
Following [[India independence|independence]], the Government of India introduced several [[India Planning Commission|5-year development plans]]. Annual production rose to {{convert|33|e6MT|e6ST|abbr=off}} at the beginning of the First Five Year Plan. The National Coal Development Corporation (NCDC), a Government of India Undertaking, was established in 1956 with the collieries owned by the railways. The NCDC aimed to increase coal production efficiently by systematic and scientific development of the coal industry. The [[Singareni Collieries Company]] Ltd. (SCCL) which was already in operation since 1945 and which became a Government company under the control of Government of Andhra Pradesh in 1956. The coal industry in India was thus controlled by state-owned companies in the 1950s. Today, SCCL is a joint undertaking of Government of Telangana and Government of India sharing its equity in 51:49 ratio.

===Nationalisation of coal mines===
Right from its genesis, the commercial coal mining in modern times in India has been dictated by the needs of the domestic consumption. India has abundant domestic reserves of coal. Most of these are in the states of [[Jharkhand]], [[Odisha]], West Bengal, Bihar, [[Chhattisgarh]], [[Telangana]] and [[Madhya Pradesh]].<ref>{{Cite web |url=http://www.krishnaninc.com/Power_India_01.pdf |title=Archived copy |access-date=9 July 2011 |archive-url=https://web.archive.org/web/20120326134237/http://www.krishnaninc.com/Power_India_01.pdf |archive-date=26 March 2012 |url-status=dead }}</ref> On account of the growing needs of the steel industry, a thrust had to be given on systematic exploitation of coking coal reserves in [[Jharia coalfield]]. Adequate capital investment to meet the burgeoning energy needs of the country was not forthcoming from the private coal mine owners.

Unscientific mining practices adopted by some of them and poor working conditions of labor in some of the private coal mines became matters of concern for the Government. On account of these reasons, the Central Government took a decision to nationalize the private coal mines. The [[nationalization]] was done in two phases, the first with the coking coal mines in 1971–72 and then with the non-coking coal mines in 1973. In October 1971, the Coking Coal Mines (Emergency Provisions) Act, 1971 provided for taking over in public interest of the management of coking coal mines and coke oven plants pending nationalization. This was followed by the Coking Coal Mines (Nationalization) Act, 1972 under which the coking coal mines and the coke oven plants other than those with the [[Tata Steel|Tata Iron & Steel Company Limited]] and [[IISCO Steel Plant|Indian Iron & Steel Company Limited]], were nationalized on 1 May 1972 and brought under the [[Bharat Coking Coal]] Limited (BCCL), a new Central Government Undertaking. Another enactment, namely the Coal Mines (Taking Over of Management) Act, 1973, extended the right of the Government of India to take over the management of the coking and non-coking coal mines in seven States including the coking coal mines taken over in 1971. This was followed by the nationalization of all these mines on 1 May 1973 with the enactment of the Coal Mines (Nationalization) Act, 1973 which determined the eligibility of coal mining in India.<ref>{{cite web|url=https://www.coalindia.in/en-us/company/aboutus.aspx| title=Coal India Limited – About Us}}</ref>

All non-coking coal mines were nationalized in 1973 and placed under Coal Mines Authority of India. In 1975, Eastern Coalfields Limited, a subsidiary of [[Coal India]] Limited, was formed. It took over all the earlier private collieries in [[Raniganj Coalfield]]. Raniganj Coalfield covers an area of {{convert|443.50|km2|sqmi}} and has total coal reserves of {{convert|8552.85|e6MT|e6ST|abbr=off}}. [[Eastern Coalfields]] puts the reserves at {{convert|29.72|e9MT|e9ST|abbr=off}} which makes it the second largest coalfield in the country (in terms of reserves).

The North East Indian states enjoys special privileges under constitution of India. The Sixth Schedule of constitution and article 371 of constitution allows state governments to formulate its own policy to recognize customary tribal laws. For example, Nagaland has its own coal policy which allows its natives to mine coal from their respective lands. Similarly, coal mining in Meghalaya was rampant till imposition of ban on coal mining by National Green Tribunal. The Nagaland Coal<ref>{{cite web|url=http://www.coaldunia.com/nagaland-coal.html|title=CoalDunia – Nagaland Coal|access-date=8 November 2014|archive-url=https://web.archive.org/web/20141021181246/http://www.coaldunia.com/nagaland-coal.html|archive-date=21 October 2014|url-status=dead}}</ref> and Meghalaya Coal<ref>{{cite web|url=http://www.coaldunia.com/meghalaya-coal.html|title=CoalDunia – Meghalaya Coal|access-date=8 November 2014|archive-url=https://web.archive.org/web/20141108064831/http://www.coaldunia.com/meghalaya-coal.html|archive-date=8 November 2014|url-status=dead}}</ref> has large buyers in North India, Central India and Eastern India.

===Denationalisation of coal mines===
Parliament enacted the ''Coal Mines (Special Provisions) Act, 2015'' in March 2015 containing provisions enabling the government to allocate coal mines through auctions. The law also permitted private players to mine coal for use in their own cement, steel, power or aluminium plants. On 20 February 2018, the Cabinet Committee on Economic Affairs (CCEA) permitted private firms to enter the commercial coal mining industry in India. Under the new policy, mines will be auctioned to the firm offering the highest per tonne price. The move broke the monopoly over commercial mining that state-owned Coal India has enjoyed since nationalisation in 1973.<ref>{{cite web|last1=India|first1=Press Trust of|title=Govt allows pvt firms to mine coal for commercial use|url=http://www.business-standard.com/article/pti-stories/govt-allows-pvt-firms-to-mine-coal-for-commercial-use-118022000978_1.html|website=Business Standard India|access-date=20 February 2018|date=20 February 2018}}</ref>

The ''Coking Coal Mines (Nationalization) Act, 1972'' and the ''Coal Mines (Nationalization) Act, 1973'' were repealed by the [[Repealing and Amending (Second) Act, 2017]] on 8 January 2018.<ref>{{Cite web |url=http://lawmin.nic.in/ld/Rep-II-2017.pdf |title=Archived copy |access-date=5 March 2018 |archive-url=https://web.archive.org/web/20180305142917/http://lawmin.nic.in/ld/Rep-II-2017.pdf |archive-date=5 March 2018 |url-status=dead }}</ref>

==Reserves==
{{See also|List of mines in India#Coal}}
India has the [[Coal#World coal reserves|fourth largest]] coal reserves in the world. As on 31 March 2019, India had {{convert|326.49|e9MT|e9ST|abbr=off}} of the resource. The known reserves of coal rose 2.34% over the previous year, with the discovery of an estimated {{convert|7.47|e9MT|e9ST|abbr=off}}. The estimated total reserves of lignite coal as on 31 March 2019 was {{convert|45.76|e9MT|e9ST|abbr=off}}, an increase of 0.22% from the previous year. [[Coal bed|Coal deposits]] are primarily found in eastern and south-central India. Jharkhand, Odisha, Chhattisgarh, West Bengal, Madhya Pradesh, Telangana and Maharashtra accounted for 98.09% of the total known coal reserves in India. As on 31 March 2019, Jharkhand and Odisha had the largest coal deposits of 25.88% and 24.76% respectively.<ref name="EnergyStatistics">{{cite web|title=Energy Statistics 2020|url=http://mospi.nic.in/sites/default/files/publication_reports/ES_2020_240420m.pdf|website=[[Ministry of Statistics and Programme Implementation]]|access-date=23 January 2020}}</ref>

The energy derived from coal in India is about twice that of the energy derived from oil, whereas worldwide, energy derived from coal is about 30% less than energy derived from oil.{{citation needed|date=April 2019}}

===Distribution of coal reserves by states===
[[File:Coal mine in Dhanbad, India.jpg|thumb|The [[Dhanbad]] mine complex.]]
The following table shows the estimated coal reserves in India by state as of 31 March 2019.<ref name="EnergyStatistics"/><ref name=CoalMinistry2012>{{cite web|url=http://www.coal.nic.in/content/coal-reserves |title=Inventory of Coal Resources of India – Ministry of Coal}}</ref>

{| class="sortable wikitable"
! State !! Coal Reserves (in billion [[Tonne|metric tonnes]]) !! Type of Coalfield
|-
| [[Jharkhand]] || align="right"|84.51 || Gondwana
|-
| [[Odisha]] || align="right"|80.83 || Gondwana
|-
| [[Chhattisgarh]] || align="right"|59.91 || Gondwana
|-
| [[West Bengal]] || align="right"|31.67 || Gondwana
|-
| [[Madhya Pradesh]] || align="right"|28.80 || Gondwana
|-
| [[Telangana]] || align="right"|21.84 || Gondwana
|-
| [[Maharashtra]] || align="right"|12.68 || Gondwana
|-
| [[Andhra Pradesh]] || align="right"|1.61 || Gondwana
|-
| [[Bihar]] || align="right"|1.83 || Gondwana
|-
| [[Uttar Pradesh]] || align="right"|1.06 || Gondwana
|-
| [[Meghalaya]] || align="right"|0.58 || Tertiary
|-
| [[Assam]] || align="right"|0.51 || Tertiary
|-
| [[Nagaland]] || align="right"|0.45 || Tertiary
|-
| [[Sikkim]] || align="right"|0.10 || Gondwana
|-
| [[Arunachal Pradesh]] || align="right"|0.09 || Tertiary
|-
! ''India'' !! align="right"|''326.49'' !!
|}

===Distribution of lignite reserves by states===
The following table shows the estimated lignite reserves in India by state as of 2018.<ref name="EnergyStatistics"/>

{| class="sortable wikitable"
! State !! Coal Reserves (in billion [[Tonne|metric tonnes]])
|-
| [[Tamil Nadu]] || align="right"|36.13
|-
| [[Rajasthan]] || align="right"|6.35
|-
| [[Gujarat]] || align="right"|2.72
|-
| [[Pondicherry]] || align="right"|0.42
|-
| [[Jammu and Kashmir (state)|Jammu and Kashmir]] || align="right"|0.03
|-
| [[Kerala]] || align="right"|0.01
|-
| West Bengal || align="right"|0.00
|-
! ''India'' !! align="right"|''45.66''
|}

==Production==
[[File:India Coal Production.png|thumb|Coal production in India, 1950–2012]]
India is the [[List of countries by coal production|second largest producer]] of coal in the world, after China.<ref>[http://www.bp.com/content/dam/bp/excel/energy-economics/statistical-review-2015/bp-statistical-review-of-world-energy-2015-workbook.xlsx Statistical Review of World Energy 2015]</ref> The production of coal was {{convert|728.72|e6MT|e6ST|abbr=off}} in 2018–19, a growth of 7.89% over the previous year. The production of [[lignite]] was {{convert|44.28|e6MT|e6ST|abbr=off}} in 2018–19, a decrease of 5.06% over the previous fiscal.<ref name="EnergyStatistics"/>

===Washing===
[[Coal washing]] is an integral part of the coal production process in which raw coal from mines is washed to remove the ash content to make it fit for feeding into boilers such as those in steel plants. Coal washeries are generally not a part of coal mines in India, with some exceptions.<ref name="EnergyStatistics"/>

There were 60 coal washeries in India as on 31 March 2019 with a total installed capacity of 146.53 million tonnes per year.<ref name="EnergyStatistics"/>

==Health effects==
{{Expand section|date=June 2020}}
The [[health and environmental impact of the coal industry]] is serious in India.<ref>{{Cite news|date=2019-11-14|title=Air pollution claimed over 5 lakh lives in India, of which 97K died due to coal burning: Report|work=The Economic Times|url=https://economictimes.indiatimes.com/news/politics-and-nation/air-pollution-claimed-over-5-lakh-lives-in-india-of-which-97k-died-due-to-coal-burning-report/articleshow/72057701.cms?from=mdr|access-date=2020-06-18}}</ref> One study found that 90% of households surveyed in a village near a coal mine reported health problems in the last year, compared to 52% of households from villages at least {{cvt|40|km|mi}} away from a mine. Additionally, the villages closest to the mine had the greatest incidence of self-reported health problems.<ref>{{cite journal|doi=10.1146/annurev-publhealth-040119-094104| doi-access=free|title=Impacts of Coal Use on Health|year=2020|last1=Hendryx|first1=Michael|last2=Zullig|first2=Keith J.|last3=Luo|first3=Juhua|journal=Annual Review of Public Health|volume=41|pages=397–415|pmid=31913772}}</ref> [[Health effects of coal ash]] are also a problem.<ref>{{Cite web|last=Welle (www.dw.com)|first=Deutsche|title=Fed up with fly ash, India villagers fight back against power plants {{!}} DW {{!}} 13.02.2019|url=https://www.dw.com/en/fed-up-with-fly-ash-india-villagers-fight-back-against-power-plants/a-47473349|access-date=2020-06-18|website=DW.COM|language=en-GB}}</ref>

==Environmental effects==
{{Expand section|date=August 2020}}
In 2020 UN secretary general [[António Guterres]] said that India should stop building coal-fired power stations before the end of the year and end [[fossil fuel subsidies]].<ref>{{Cite web|date=2020-08-28|title=UN secretary general urges India to swiftly turn away from coal|url=http://www.theguardian.com/world/2020/aug/28/un-secretary-general-urges-india-to-swiftly-turn-away-from-coal|access-date=2020-08-28|website=the Guardian}}</ref>

==Consumption==
[[File:Demand, production and import of coal (in million tonnes).png|thumb|Demand, production and import of coal<ref>{{cite web|title=From Adani to Ambani, How Alleged Over Invoicing of Imported Coal has Increased Power Tariffs|url=http://thewire.in/2016/04/06/from-adani-to-ambani-how-alleged-over-invoicing-of-imported-coal-has-increased-power-tariffs-27907/|access-date=6 April 2016|archive-url=https://web.archive.org/web/20160406193548/http://thewire.in/2016/04/06/from-adani-to-ambani-how-alleged-over-invoicing-of-imported-coal-has-increased-power-tariffs-27907/|archive-date=6 April 2016|url-status=dead}}</ref> (in million tonnes)]]
Industries in India consumed 968.25 MT of raw coal in 2018–19, growing by 7.76% over the previous fiscal. The largest consumers of coal in India are electricity generation (637.95 MT), the steel and washery industries (69.50 MT), the [[sponge iron]] industry (12.23 MT) and the [[cement industry]] (8.82 MT). Consumption of lignite stood at 45.81 MT in 2018–19. Electricity generation alone accounts for 82.23% of the total lignite consumption.<ref name="EnergyStatistics"/>

Due to high demand and poor average quality, India is forced to import high quality coal to meet the requirements of steel plants. India's coal imports have risen from {{convert|73.26|e6MT|e9ST|abbr=off}} in 2009–10 to {{convert|235.24|e6MT|e9ST|abbr=off}} in 2018–19. India's coal exports declined from {{convert|2.45|e6MT|e6ST|abbr=off}} in 2008–09 to {{convert|1.31|e6MT|e6ST|abbr=off}} in 2018–19.<ref name="EnergyStatistics"/>

===Electricity generation===
{{see|List of power stations in India#Coal}}
Coal generated over 70% of electricity produced in 2017–18, while lignite accounted for 3.6% of electricity generation.<ref name="EnergyStatistics"/> [[Electricity sector in India|India's electricity sector]] consumed over 70% of the coal produced in the country in 2013.<ref name="Key World Energy Statistics">{{Cite web|url = http://www.iea.org/publications/freepublications/publication/KeyWorld2013.pdf|title = Key World Energy Statistics|year = 2013|access-date = 18 June 2014|publisher=International Energy Agency}}</ref> In 2020 [[think tank]] [[Carbon Tracker]] estimated that 17% of coal-fired plants were already more expensive than new renewables and that 85% would be by 2025.<ref>{{Cite report|title=How to Retire Early: Making accelerated coal phaseout feasible and just|url=https://carbontracker.org/reports/how-to-retire-early/|date=June 2020|publisher=[[Carbon Tracker]]}}</ref>

A large part of Indian coal reserve is similar to [[Geology of India|Gondwana coal]]. It is of low calorific value and high ash content. The carbon content is low in India's coal, and toxic trace element concentrations are negligible. The natural fuel value of Indian coal is poor. On average, the Indian power plants using India's coal supply consume about 0.7 kg of coal to generate a kWh, whereas United States thermal power plants consume about 0.45 kg of coal per kWh. This is because of the difference in the quality of the coal, as measured by the Gross Calorific Value (GCV). On average, Indian coal has a GCV of about 4500 Kcal/kg, whereas the quality elsewhere in the world is much better; for example, in Australia, the GCV is 6500 Kcal/kg approximately.<ref>{{cite web|title=Economics of Coal and Gas Based Energy|publisher=Third Wave Solutions|year=2012|url=http://www.thirdwavesolutions.in/index.php/reports-and-opinions/2-uncategorised/14-coal-gas-indian-perspective}}</ref> India imported nearly 95 [[Tonne of oil equivalent|Mtoe]] of steam coal and coking coal which is 29% of total consumption to meet the demand in electricity, cement and steel production.<ref>{{cite web |url=http://www.bp.com/content/dam/bp/excel/Energy-Economics/statistical-review-2014/BP-Statistical_Review_of_world_energy_2014_workbook.xlsx |title=Statistical Review of world energy 2014 workbook |access-date=17 June 2014 |url-status=dead |archive-url=https://web.archive.org/web/20140622090917/http://www.bp.com/content/dam/bp/excel/Energy-Economics/statistical-review-2014/BP-Statistical_Review_of_world_energy_2014_workbook.xlsx |archive-date=22 June 2014 }}</ref>

==Coal mafia==
The state-owned coal mines of Bihar (now [[Jharkhand]] after the division of Bihar state) were among the first areas in India to see the emergence of a sophisticated [[mafia]], beginning with the mining town of Dhanbad.<ref name="bharti1989">Indu Bharti, "Usurpation of the State: Coal Mafia in Bihar", ''Economic and Political Weekly'', Vol. 24, No. 42, pg. 2353. 21 October 1989.</ref> It is alleged that the coal industry's trade union leadership forms the upper echelon of this arrangement and employs caste allegiances to maintain its power.<ref name="rao1983">S. Venugopala Rao, ''Crime in Our Society: A Political Perspective'', Vikas Publishing House, 1983, {{ISBN|0-7069-1209-8}}: "Using the vast money, muscle and caste power, trade union leaders have built up a Mafia-like empire which totally controls the life and economy of Dhanbad ... workers who constitute about 40 percent of Dhanbad districts population are mainly tribals, adivasis, Harijans and backward castes, while the trade union musclemen are mostly Rajputs of Bhojpur and Rohtas districts."</ref> Pilferage and sale of coal on the [[black market]], inflated or fictitious supply expenses, falsified worker contracts and the [[expropriation]] and leasing-out of government land have allegedly become routine.<ref name="mathur1991">Ajeet N. Mathur, Asian Regional Team for Employment Promotion, World Employment Programme, ''Industrial Restructuring and Union Power: Micro-economic Dimensions of Economic Restructuring and Industrial Relations in India'', International Labour Organization, 1991, {{ISBN|92-2-107494-3}}: "According to many workers, it is not possible for genuine trade unionism to flourish in Dhanbad because of illicit trading and profiteering in the garb of trade unionism and the protective umbrella such an institution holds out."</ref> A parallel economy has developed with a significant fraction of the local population employed by the mafia in manually transporting the stolen coal for long distances over unpaved roads to illegal mafia warehouses and points of sale.<ref name="frontline2005">{{cite web|date=2005-02-26|title=Coal theft and vote|url=http://www.hinduonnet.com/fline/fl2205/stories/20050311001703700.htm|url-status=dead|archive-url=https://web.archive.org/web/20080618051946/http://www.hinduonnet.com/fline/fl2205/stories/20050311001703700.htm|archive-date=18 June 2008|access-date=29 October 2008|work=Frontline Magazine}}</ref>

The coal mafia has had a negative effect on Indian industry, with coal supplies and quality varying erratically. Higher quality coal is sometimes selectively diverted, and missing coal is replaced with stones and boulders in railway cargo wagons. A human corpse has been discovered in a sealed coal wagon.<ref name="mittal1994">D. K. Mittal, ''Coal Industry'', Anmol Publications Private Limited, 1994, {{ISBN|81-7041-863-1}}. Snippet: "Default on quality, quantity and timely supply of coal have taken their toll on the Indian industry and come in their way in acquiring international competitiveness ... coal ministry officials have themselves observed boulders and dust being loaded in wagons supposed to be carrying steam coal ... checking officials even found the dead body of a person."</ref>

== See also ==
* [[Ministry of Coal]]
* [[Indian Coal Allocation Scam]]
* [[1965 Dhanbad coal mine disaster]]
* [[Mining scams in India]]
* [[Carr, Tagore and Company]]

==References==
{{reflist|3}}

==Further reading==
* [https://www.brookings.edu/wp-content/uploads/2019/03/fp_20190731_coal_in_india.pdf Adjusting to transition [[Brookings Institute]]]

==External links==
* [https://energyandcleanair.org/ Centre for Research on Energy and Clean Air]

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Coal in India - Revision history

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