India while being the world’s fourth largest country in terms of availability of coal reserves, still imports around 240 million tonnes (mt.) of coal valued at about ₹1.7 lakh crore, each year. A key raw material for steel, coking coal, is imported to meet almost the entire demand, as the domestic supply of high-quality coking coal is not adequate to meet the burgeoning demand.   

While the share of renewable energy in India’s energy basket is on the rise, coal-fired plants still generate 72% of India’s electricity. Due to high demand, the allocation of coal mines has often courted controversies. Accordingly, based on an incriminating CAG Report indicating less than honourable coal allocation, the Hon’ble Supreme Court vide its order dated August 25, 2014, read with its order dated September 24, 2014 ordered the cancellation of allocation of 204 coal mines.