Coal sector in India
Question
Consider the following statements:
Which of the statements given above is/are correct?
- 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.
Options
1 only
2 and 3 only
3 only
1, 2 and 3
Explanation
Statement 1 is correct. Coal was nationalized in India under Indira Gandhi's government on May 1, 1973, when all private coal mines were taken over by the state through the Coking Coal Mines (Nationalization) Act, 1972 and later extended to all coal mining. Statement 2 is incorrect. Coal blocks are now allocated through a competitive bidding process, not lottery basis, following the 2020 auction reforms. Statement 3 is partially true but overstated. While India has increased domestic coal production significantly, it still imports coal to meet specific requirements, though import dependence has reduced. As of 2019, India was not entirely self-sufficient. > Coal was NATIONALIZED under Indira Gandhi; allocation is now through bidding (not lottery). Answer: (a).
Question details
Year
2019
Paper
GS Paper 1
Question
Q48
Subject
Economy
Sub-topic
Energy sector and nationalization
Type
Statement-based
Difficulty
Medium
Nature
Hybrid
Source hint
Current Affairs 2018-2019; Coal Sector
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