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At present 54.09% or 93918.38 MW (Data Source CEA, as on 31/03/2011) of total electricity production in India is from Coal Based Thermal Power Station. A coal based thermal power plant converts the chemical energy of the coal into electrical energy.

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Tamil Nadu is facing largest power shortage in 2013 (34.1% deficit), the highest in the country, due to industrialization over the last decade. India's leading steel producer SAIL has a steel plant in Salem, Tamil Nadu. Tamil Nadu ranks first nationwide in diesel-based thermal electricity generation with national market share of over 34%.

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