Coal is the major source of power for industries. It is important for iron and steel, and chemical Industries. India has huge reserves of coal. 3/4th of coal reserves are located in Damodar valley. Madhya Pradesh, Andhra Pradesh and Maharashtra have also coal fields.

Nationalisation of coal fields. After independence, coal industry has been nationalised. Its main aim is to protect the coal labourers from injustice.

Importance of coal. Light brown coal is of great importance for India. It has been useful for producing electricity and gas. Oil can be obtained from it. Mini thermal plants have been set up near coal fields. The electricity produced thus is connected with national electric grid. It saves time and expenditure both.

Production: In 1951, coal production was 3.5 crore tonnes. Now it has increased to 333.58 million tonnes.

Problems:

• There is shortage of high grade coal.
• Fire accidents have taken the lives of several labourers.
• Coal fields are found at great depth. Its mining is expensive.
• The technical development of coal production is slow.