UPSC Prelims 2019·GS1·economy·economic sectors and development

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?

Dalvoy logo
Reviewed by Dalvoy
UPSC Civil Services preparation
Last updated 23 May 2026, 3:31 pm IST
  1. A1 onlyCorrect
  2. B2 and 3 only
  3. C3 only
  4. D1, 2 and 3

Explanation

Let's analyze each statement regarding the coal sector in India: 1. Coal sector was nationalized by the Government of India under Indira Gandhi. Correct. The nationalization of coal mines in India occurred in two phases during Indira Gandhi's tenure as Prime Minister: the coking coal mines were nationalized in 1971-72, and the non-coking coal mines in 1973. This move aimed to ensure systematic development of coal resources and improve working conditions for miners. 2. Now, coal blocks are allocated on lottery basis. Incorrect. Following the Supreme Court's cancellation of coal block allocations in 2014 due to irregularities, the government reformed the allocation process. Coal blocks are now primarily allocated through a transparent auction process for commercial mining and specific end-uses, not on a lottery basis. 3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production. Incorrect. While India is the world's second-largest producer of coal, it continues to import a significant amount of coal. This includes coking coal (essential for the steel industry, where domestic supply is limited in quality) and some thermal coal to bridge demand-supply gaps. Despite efforts to boost domestic production, India is not yet self-sufficient in coal and remains a net importer. Therefore, only statement 1 is correct.
economy: Consider the following statements: 1. Coal sector was nationalized by the Government of India under Indira Gandhi. 2. No

Related questions

More UPSC Prelims practice from the same subject and topic.