Consider the following statements:
- CoaI sector was nationalized by the Government of India under Indira Gandhi.
- Now, coal blocks are allocated on a lottery basis.
- Till recently, India imported coal to meet the shortage of domestic supply, but now India is self- sufficient in coal production.
Which of the statements given above is/arc correct?
Detailed Explanation:
Answer: Option 1 — 1 only
The coal sector was indeed nationalized during the Indira Gandhi government in the 1970s through the Coal Mines (Nationalisation) Act. However, coal blocks are now allocated through competitive auctions (not lottery), and India continues to import significant quantities of coal despite increased domestic production, indicating it is not self-sufficient.
✅ Statement 1 – Correct: The coal sector was nationalized by the Indira Gandhi government in phases during the 1970s through the Coal Mines (Nationalisation) Act, 1973.
❌ Statement 2 – Incorrect: Coal blocks are allocated through competitive auctions (introduced after 2014), not on a lottery basis.
❌ Statement 3 – Incorrect: India still imports substantial quantities of coal (especially coking coal for steel industry) and is not self-sufficient in coal production.
📝 Short Notes: Coal Sector in India
| Aspect | Details |
|---|---|
| Nationalization | Coal Mines (Nationalisation) Act, 1973 – nationalized coal mines except coking coal mines; Coking coal mines nationalized in 1973 |
| Current Allocation Method | Competitive auction system introduced through Coal Mines (Special Provisions) Act, 2015 after cancellation of coal block allocations by Supreme Court in 2014 |
| Major Public Sector Companies | Coal India Limited (CIL) – accounts for over 80% of domestic coal production; Singareni Collieries Company Limited (SCCL) |
| Coal Imports | India imports coal to meet demand-supply gap, particularly coking coal (used in steel production) and high-grade thermal coal |
| Major Coal Reserves | Jharkhand, Odisha, Chhattisgarh, West Bengal, Madhya Pradesh |
Question 2 of 6 Industrial Policies
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