UPSC 2019EconomyModerate

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
Correct Answer
B
2 and 3 only
C
3 only
D
1, 2 and 3

Explanation

Statement 1 is correct because the coal industry was nationalized in two phases (1971–1973) during Indira Gandhi’s tenure to ensure equitable distribution and worker safety. Statements 2 and 3 are incorrect because coal blocks are now allocated through a transparent competitive auction process rather than a lottery, and India remains a major importer of coal (especially coking coal) to meet domestic demand. The core concept tested is the historical evolution and current regulatory framework of India’s energy and mining sectors.

Energy SectorCoal Mining and PolicyCoal Mines (Nationalisation) ActIndira GandhiCoal Block Allocatione-auctionCoal Imports

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