Despite having large reserves of coal, why does India import millions of tons 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 a large quantity of coking coal which has to be imported.Which of the statements given above is/are correct?
✓ Correct answer: b) 2 and 3 only
ExplanationStatement 1 is incorrect: India does not have a poli- cy to save coal reserves for the future.Coal imports are driven by domestic supply shortages and the need for high-quality cok- ing coal, not strategic conservation.Statement 2 is correct: A significant portion of India’s power plants are coal-based, and domestic coal production often falls short of demand.This forces power plants to rely on coal imports to meet their requirements.Statement 3 is correct: India has limited reserves of high-quality coking coal, which is essential for steel produc- tion.Most of the coking coal used by steel companies is imported from countries like Australia, as domestic production is insuffi- cient and often of lower quality.Indian Economy 259 82
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