In India Coal is the primary source for power generation. India has huge reserves of coal, approximately 206 billion tones (which is 6% of the world coal reserves) and a huge amount of lignite (brown coal) which is used in thermal power stations. There is an estimated 206 billion tones. In 1995-96 India has produced about 270 million tonnes of coal. Since 18th century Coal mining is prevalent in India. In 1923, for the first time a regulatory framework for the Coal industry was set up. The government of India has nationalized the coal industry in 1972-73 with the primary objective to develop the Coal sector, as it was considered to be of strategic importance for rapid industrial development. Coal India Limited (http://www.coalindia.nic.in/) was established as a holding company for seven coal producing subsidiaries and a planning and design focused institute. Coal India Limited is engaged in mining from a total of 495 working coal mines that account for nearly 88 percent of total production. With the beginning of the economic reforms in India, now the government control over pricing and distribution have been relaxed and a new coal policy permitting private sector participation in commercial coal mining, has been announced.