Importance of Coal in Indian Economy
The importance of coal as a fuel or power resource cannot be overestimated. The economic development of any country largely depends upon its industrial progress.
And, the industrial development of a country largely depends upon its possessing a sufficiently large stock of this most valuable mineral product.
Coal is regarded as the backbone of power generation in India. There is huge demand for power in India. Power is essential and most important factor for industrial and business set up.
India’s coal position is quite encouraging and it offers good prospects for the development of this industry. During 2011, India was the third largest coal producing country in the world. Hence, coal is an important constituent of the present Indian economy.
The total reserves of coal in India have been over 290 billion metric tons. The coalfields in India are located mostly in Jharkhand, Odisha, Madhya Pradesh, Chhattisgarh, Uttar Pradesh, Meghalaya, Telangana, West Bengal, Sikkim, Arunachal Pradesh and Bihar.
The yearly production of coal in India was around 6 million tons a year in the beginning of the 20th century. Now it has reached the figure of 532 million metric tons a year (Year: 2010-11).
Coal India Limited (CIL) is the largest coal producing company in India. It accounts for more than 80% of total coal produced in India. CIL is a public sector entity. It is listed on both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Demand for coal will go up every year with the growth and development of our industries.
