Consider the following statements :
- 1. Coal sector was nationalized by the Government of India under Indira Gandhi.
- 2. Now, coal blocks are allocated on lottery basis.
- 3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self sufficient in coal production.
Which of the statements given above is/are correct?
1 only
2 and 3 only
3 only
1, 2 and 3
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC IAS – 2019
– Statement 2 is incorrect. After the Supreme Court cancelled most coal block allocations in 2014 due to irregularities, the government shifted to a policy of allocating coal blocks through auctions for commercial mining and for specific end-uses (like power, steel, cement). Lottery systems were not the primary method for coal block allocation, especially for commercial mining post-2014.
– Statement 3 is incorrect. While India is the second-largest producer of coal globally, it is also a significant importer of coal, particularly coking coal and thermal coal of certain specifications, to meet its domestic demand which outstrips domestic supply capabilities in certain sectors and grades. India is not self-sufficient in coal production in terms of meeting its entire demand.