Why Coal for generating electricity in India?
The type of power plant being set-up depends on the ready availability of the fuel source and India has the 4th largest reserves of coal and is the 3rd largest producer of coal in the world. There is also ready availability of water sources for use in these coal fired thermal power plants for generating electricity. For power plants in the South of India, despite low coal reserves, there is a good trade network between Australia and South Indian ports providing ready supply of imported coal. Also rates of coals over a long period are stable as compared to the volatility of gas.