Coal contributes to 58% of total primary energy requirement of India. The power industry accounts for over 70% of the coal consumption in the Indian economy. A total of 306.60 billion tonnes of coal reserves are estimated in India as of a few years back. The state of Jharkhand has the largest reserves in the country. In India, 90% of the coal is produced by public sector while only 10% is produced by the private sector.
The total coal produced by the Indian public units was 600.03MT in 2017 while the private players manufactured 32.139MT of coal in the same period. Given the demand for coal in the economy, the Ministry of Coal, has targeted to double the coal production in the country.
74.2% of the coal consumed in India is domestic while the remaining is imported. One-fourth of its domestic coal consumed is imported by India. India imports most of the coal from Indonesia, usually of low quality which is then blended with high quality coal prior to burning.