Coal is considered to be an important raw material for many sectors in India. Over the years, demand and supply, and import of coal has increased concurrently. However, in the railways and the domestic sector, there is a decrease in the growth of demand for coal. These are the sectors where alternative fuel is now being used, though in a limited way. But with environmental issues gathering momentum, a question arises: Can coal survive in a green world? This paper tries to address this question from the Indian perspective.

Humanity needs energy in various forms and for various purposes. Energy is a basic requirement for all modern developmental activities and can be generated by a variety of methods, materials and mechanisms. There continues to be a controversy about the long-term impact due to the generation of large amounts of energy by various methods. However, the vagaries of the monsoon, the uncertainty of hydel power, the meager oil reserves, the problems associated with safety and disposal of nuclear waste and the high technology needed for taping non-conventional energy resources; single out coal as the primary and principle source of energy in India (Sahu, 1994).

India ranks sixth in the World in terms of energy demand, accounting for 3.5% of world commercial energy demand in 2001. With a Gross Domestic Product (GDP) growth of 8% set for the Tenth Five Year Plan, the energy demand is expected to grow at 5.2% (Tenth Five Year Plan, 2002). Total supply of energy (both commercial and noncommercial) has increased from 90.38 Million Tonnes Oil Equivalent (MTOE) in 1953-54 to about 390 MTOE in 1997-98. The country has seen the expansion with a shift from the noncommercial —to commercial sources of energy.

The share of noncommercial energy declined from 74% in 1950-51 to about 31.8% in 2001-02, while the share of commercial energy increased from 28% in 1950-51 to 67% in 1997-98. This increase is more because of the emphasis on industrialization, increased use of lift irrigation in agriculture and development of rail and road transport. Commercial energy includes coal and lignite, oil, gas, hydroelectricity and nuclear power. Coal is the principle source of commercial energy accounting for nearly 50% of the total energy, including commercial and noncommercial.