In this paper, an analysis of present scenario of coal in India has been made. In particular, energy requirements for the developing countries are met from coal-based thermal power plants. In India, about 75% coal output is consumed in power sector. In addition, other industries like cement, fertilizer, chemical, paper and thousands of medium and small scale industries are dependent on coal for their process and energy requirements. Since the country's dependency on coal is increasing, therefore it becomes mandatory for the government to seek better technologies for fulfilling its needs.