UPSC Prelims 2019 Question:

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 products.
   
   

Which of the statements given above is/are correct?

Explanation:

• Post-independence, the nationalization of the private coal mines was done in two phases, the first with the coking coal mines in 1971-72 and then with the non-coking coal mines in 1973. This nationalization took place under the tenure of the then Prime Minister Indira Gandhi (1966-77 and 1980-84). So, statement 1 is correct.
  
  
• The Supreme Court cancelled the coal block allocations in 2014 due to opaque allocation of the coal blocks. Responding to this Supreme Court decision, the Central Government promulgated the Coal Mines (Special Provision) Act, 2015 to enable the Government to re-allocate the cancelled coal blocks to allocate coal mines by way of auction (earlier Lottery basis). So, statement 2 is not correct.
  
  
• Despite India being world’s second largest coal producer and being the 5th largest country in terms of coal deposits, with coal reserves which may last at least 100 years more, it is unable to produce adequate quantities of coal to meet the requirement of domestic industry and development. So, statement 3 is not correct.
  
  

Therefore, option (1) is the correct answer.

Relevance: In 2014, The Supreme Court declared the allocations of all coal blocks from as far back as 1993 and until 2010 as illegal.

Subject: Geography | Mineral Resources