Coal continues to be one of India’s most important energy resources. Even as renewable power grows, coal remains the backbone of industries such as power generation, steel, cement, manufacturing and large-scale infrastructure. In 2025, India crossed a major milestone by producing more than one billion tonnes of domestic coal, reflecting both strong demand and rising industrial activity.

For businesses that rely on consistent fuel supply, understanding coal grades, applications and market trends is essential. This guide breaks down everything you need to know, from coal types to industry use cases and how the market is shaping up for 2025.

India’s Coal Landscape in 2025

India is currently the world’s second-largest coal producer. Recent figures show production rising to more than 1,047 million tonnes, marking steady year-on-year growth. This increase supports the country’s expanding power needs, rapid industrialization and infrastructure development.

Even with this strong domestic output, many industries still depend on imported coal for specific grades, higher calorific values or consistent quality. Companies like Gsinfotechvis support this demand with reliable sourcing from trusted global suppliers, especially in Indonesia and other major exporting regions.

The Five Major Types of Coal Used in India

Different industries rely on different coal grades based on energy content, carbon percentage and moisture levels. Here are the five main types used across the country.

1. Thermal Coal

Thermal coal is the most widely used form of coal in India. It is primarily used in power plants to generate electricity. The coal is burned to produce steam, which drives turbines and powers the grid.

Industries that depend on thermal coal include power utilities, textile mills, food processing units and large manufacturing plants.

2. Coking Coal

Coking coal is essential for steelmaking. When heated in the absence of air, it forms coke, a strong and porous substance used in blast furnaces.

India imports a large portion of its coking coal because domestic reserves do not meet the required metallurgical grade. This makes the steel sector one of the biggest importers of high-quality coal.

3. Bituminous Coal

Bituminous coal contains a higher carbon content and energy value than sub-bituminous coal. It is commonly used in cement plants, brick kilns and industrial boilers.

Many industries prefer this grade because it provides steady heat and consistent performance.

4. Sub-Bituminous Coal

Sub-bituminous coal has lower carbon levels but burns cleaner with reduced sulphur content. It is widely used in electricity generation and is often favored for its cost-effectiveness.

5. Anthracite

Anthracite is the highest grade of coal with the highest carbon content. It burns with a clean flame and produces very little smoke. While it is not as common in India, it is used in specialized industrial applications, chemical processes and certain metallurgical operations.

Key Industrial Uses of Coal in India 


Coal is not just an energy resource. It plays a central role across many sectors.

◾ Power generation

Coal-based plants supply more than 70 percent of the nation’s electricity.

◾ Steel and metallurgy

Coking coal supports blast furnaces and smelting operations.

◾ Cement manufacturing

Kilns depend heavily on coal-based heat.

◾ Industrial heating and boilers

Factories use coal for steam, drying and thermal applications.

◾ Chemical production

Certain types of coal are used in producing activated carbon, carbon black and industrial chemicals.

This versatility keeps coal a critical part of India’s growth engine.

Coal Market Demand in 2025

Coal demand in India continues to rise due to:

◾ Growth in the power sector

◾ Expansion of steel and cement industries

◾ Rising manufacturing output

◾ Increasing energy needs in rural and semi-urban regions

Even with higher domestic extraction, the need for imported coal remains strong, especially for higher calorific values and consistent quality standards. Businesses seek suppliers that offer dependable logistics, transparent quality checks and timely delivery.

Companies like Gsinfotechvis bridge this gap by providing both domestic and imported coal solutions backed by supplier vetting, Q and Q inspection, global compliance and efficient port-to-facility logistics.

Final Thoughts

Coal will continue to be a key resource in India’s industrial and energy mix throughout 2025. Understanding the different types of coal and their applications helps businesses make informed decisions regarding procurement, cost efficiency and operational performance.

With the right sourcing partner, industries can secure high-quality coal that supports uninterrupted production. Through strong global networks and a commitment to reliable supply, Gsinfotechvis continues to serve as a trusted partner for coal import and distribution across India. 

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