Lignite, a premature variety of coal is a dark brown to black combustible mineral formed over millions of years by the partial decomposition of plant material subject to increased pressure and temperature in an airless atmosphere. In simple terms, lignite is a brown coal. In its natural form, lignite is porous, light in weight and contains a high percentage of moisture and volatile matters as compared to Fixed Carbon. Because of this, its transportation, over long distances is uneconomical.  Therefore, this fuel is ideally suitable for running Lignite based power generation plant located close to pit head.