UPSC Prelims 2019 Q48: Indian Economy – Infrastructure & Industry
- (a) 1 only
- (b) 2 and 3 only
- (c) 3 only
- (d) 1, 2 and 3
Answer: (a) 1 only
Explanation
Coal Sector in India: Facts
| Statement | Claim | Verdict | Detail |
|---|---|---|---|
| 1 | Coal sector nationalised under Indira Gandhi | TRUE | Coking Coal Mines (Nationalisation) Act 1972 and Coal Mines (Nationalisation) Act 1973 - both under Indira Gandhi. Coal India Ltd (CIL) formed 1975. |
| 2 | Coal blocks allocated on lottery basis | FALSE | Post SC's 2014 cancellation of 214 blocks (Coalgate), allocation is via transparent AUCTIONS (Coal Mines (Special Provisions) Act 2015), NOT lottery. |
| 3 | India is now self-sufficient in coal | FALSE | India still imports coal - about 200+ million tonnes/year especially coking coal for steel and thermal coal for coastal plants. Not self-sufficient. |
Only statement 1 is correct. Answer: (a) 1 only.
Answer: (a) 1 only.
Why each option is right or wrong
- (a) CORRECT. Only statement 1 is correct - coal was nationalised under Indira Gandhi. Coal blocks are auctioned (not lottery), and India still imports coal.
- (b) Incorrect. Statement 3 is wrong - India remains a net coal importer.
- (c) Incorrect. Statement 2 (lottery allocation) is wrong - allocation is now by auction.
- (d) Incorrect. Statements 2 and 3 are wrong.
Key point
Coal nationalisation = Indira Gandhi (1972-73). Coal India Ltd formed 1975. Post-2014 Coalgate: allocation by AUCTION (not lottery). India still imports coal (coking coal + thermal).
Remember
Only statement 1 is correct. Coal was nationalised under Indira Gandhi (1972-73), leading to Coal India Ltd in 1975. However, coal block allocation is now via transparent auctions (NOT lottery), and India remains a net coal importer - not self-sufficient - importing over 200 million tonnes per year.
Common mistakes
- Confusing lottery with auction. Post-Coalgate reform is auction-based, market-determined.
- Assuming India is coal self-sufficient because it is the world's #2 producer - imports of high-quality coking coal remain critical.
- Missing that private commercial mining was allowed via 2018/2020 reforms - ending CIL's monopoly on commercial mining.
Exam tip
Coal reform timeline: 1972-73 = Nationalisation. 1975 = Coal India Ltd. 2014 = SC cancels 214 blocks (Coalgate). 2015 = Coal Mines Special Provisions Act (auction framework). 2018-20 = Commercial mining opened to private/foreign firms.
Sources
- Coal Mines (Special Provisions) Act, 2015
- Ministry of Coal - Annual Report and coal import statistics