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?

1. 1 only
2. 2 and 3 only
3. 3 only
4. 1, 2 and 3

Explanation

Statement 1 is correct

• The nationalisation of coal in India occurred in two phases (During Mrs. Indira Gandhi): coking coal in 1971-72 and non-coking coal in 1973.

Statement 2 is incorrect

• The current methodology for coal block allocation involves an auction process, not a lottery (Coal Mines (Special Provisions) Act, 2015). The auction provides a transparent, competitive bidding system for coal mining rights.

Statement 3 is incorrect

• While India has been working towards self-sufficiency in coal production and has significant reserves, it imports coal to meet its certain demands.

Answer: (a) 1 only; Difficulty Level: Easy