Despite having large reserves of coal, why does India import millions of tonnes of coal?

1. It is the policy of India to save its own coal reserves for the future and import it from other countries for the present use.
2. Most of the power plants in India are coal based and they are not able to get sufficient supplies of coal from within the country
3. Steel companies need large quantity of coking coal which has to be imported.

Which of the statements given above is/are correct?

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

Explanation

Statement 1 is incorrect

• There is no official policy to conserve domestic coal reserves for the future while relying on imports for present use. The primary reasons for coal imports are supply constraints and quality requirements.

Statement 2 is correct

• Many power plants in India face coal shortages due to issues such as inadequate domestic production, transportation bottlenecks, and inefficiencies in coal supply chains.

Statement 3 is correct

• Steel companies require large quantities of coking coal, and India’s domestic reserves are insufficient to meet the needs of its steel industry. As a result, a significant portion of coking coal has to be imported.

Answer: (b) 2 and 3 only; Difficulty Level: Easy