GS PrelimsGeography (Human geography)Minerals and Energy2019

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?

A

1 only

B

2 and 3 only

C

3 only

D

1, 2 and 3

Correct Answer: Option A

Explanation

1. Statement 1 is correct. The coal sector in India was indeed nationalized by the Government of India in two phases, 1971-72 (coking coal mines) and 1973 (non-coking coal mines), during the premiership of Indira Gandhi, primarily through the Coal Mines (Nationalisation) Act, 1973. 2. Statement 2 is incorrect. Following the Supreme Court's cancellation of earlier allocations in 2014, coal blocks are now primarily allocated through a transparent bidding process (auctions), not on a lottery basis. 3. Statement 3 is incorrect. India has large coal reserves and significant domestic supply, but it continues to import coal, especially high-quality coking coal required for the steel industry and often thermal coal to meet power sector shortages. India is not currently self-sufficient in coal production/supply to meet all its needs. 4. Therefore, only statement 1 is correct.

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