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UPSC Prelims 2012 Q84: Indian Economy – Infrastructure & Industry

UPSC Prelims 2012, General Studies Paper I · Indian Economy

Despite having large reserves of coal, why does India import millions of tonnes of coal? 1. It is the policy of India to save its own coal reserves for future, and import it from other countries for the present use. 2. Most of the power plants in India are coal - based and they are not able to get sufficient supplies of coal from within the country. 3. Steel companies need large quantity of coking coal which has to be imported. Which of the statements given above is/are correct?
  1. (a) 1 only
  2. (b) 2 and 3 only
  3. (c) 1 and 3 only
  4. (d) 1, 2 and 3

Answer: (b) 2 and 3 only

Explanation

Why India imports coal

StatementVerdictReason
1. It is the policy of India to save its own coal reserves for future, and import it from other countries for the present useIncorrectThere is no such policy; India tries to raise its own output
2. Most of the power plants in India are coal-based and they are not able to get sufficient supplies of coal from within the countryCorrectDomestic supply has often fallen short of demand; coastal plants are built for imported coal
3. Steel companies need large quantity of coking coal which has to be importedCorrectIndia has little good coking coal; most of it is imported, chiefly from Australia

Indian coal at a glance:

PointDetail
TypeMostly Gondwana coal, non-coking
QualityHigh ash, low sulphur, low heat value
Main StatesJharkhand, Odisha, Chhattisgarh, West Bengal
Main suppliers of importsIndonesia, Australia, South Africa

Answer: (b) 2 and 3 only.

Why each option is right or wrong

Key point

India imports coal because domestic supply lags demand from power plants and good coking coal for steel is scarce; Indian coal is high in ash; imports from Indonesia and Australia.

Remember

Coking coal is imported; power plants face short supply.

Common mistakes

Exam tip

'It is the policy of India to...' statements need a real policy behind them. No such policy exists here.

Sources

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