Coal is the main source for the production of electricity in the whole country just not Punjab. Coal counts for more than 3/4 of country's electricity production.
Most traditional Power Plants make energy by burning Fuel. In the case of thermal power plants, the fuel is coal.
Almost 72% of the country's coal is used in thermal power stations.
In Thermal Power Plants, coal is burned to produce heat. This heat is then used to boil water which turns into steam.
The steam flows to rotate a windmill like structure called a turbine. The turbine is then connected to a generator which produces electricity.
On the whole, Heat from the burning coal is converted into electricity.