UPSC Prelims 2012 Q84: Indian Economy – Infrastructure & Industry
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?
- (a) 1 only
- (b) 2 and 3 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
Answer: (b) 2 and 3 only
Explanation
Why India imports coal
| Statement | Verdict | Reason |
|---|---|---|
| 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 | Incorrect | There 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 country | Correct | Domestic 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 imported | Correct | India has little good coking coal; most of it is imported, chiefly from Australia |
Indian coal at a glance:
| Point | Detail |
|---|---|
| Type | Mostly Gondwana coal, non-coking |
| Quality | High ash, low sulphur, low heat value |
| Main States | Jharkhand, Odisha, Chhattisgarh, West Bengal |
| Main suppliers of imports | Indonesia, Australia, South Africa |
Answer: (b) 2 and 3 only.
Why each option is right or wrong
- (a) Incorrect. India has no policy to save its own coal reserves by importing.
- (b) CORRECT. Power plants face short supply and steel needs imported coking coal.
- (c) Incorrect. Statement 1 is false and Statement 2 on power plants is left out.
- (d) Incorrect. Statement 1 is false; saving reserves is not India's policy.
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
- Believing India deliberately conserves its coal by importing.
- Not separating coking coal (steel) from thermal coal (power).
- Assuming large reserves mean there is no need to import.
Exam tip
'It is the policy of India to...' statements need a real policy behind them. No such policy exists here.
Sources
- Ministry of Coal — Annual Report (import of coal; coking coal)
- NCERT Class XII — India: People and Economy, Ch on Mineral and Energy Resources