Although starting slowly since the inception of coal mining in India since 1774, India now ranks as the third-largest coal producing country in the world after China and USA. Coal meets about 55 per cent of India’s primary commercial energy needs and about 75 per cent of power generation is coal based in India. Coal can be coking coal which is used in manufacturing and other metallurgical industries and non-coking coal used mainly in power generation. In India coal production is dominated by non-coking coal as coking coal reserves in India are limited. The National Mission on Enhanced Energy Efficiency under its mission has raised the demand for good quality coal in India and offered regulatory mechanisms to reduce specific energy consumption. However, despite their efforts, the supply of low grade coal has been a persistent problem in India.