Civil Services Prep

Prelims 2019 · Economy · Question 88

Consider the following statements:<br/>1. Coal sector was nationalized by the Government of India under Indira Gandhi.<br/>2. Now, coal blocks are allocated on lottery basis.<br/>3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production.<br/><br/>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

Answer

1 only

1. Correct. Coal mines were nationalized in phases in the early 1970s during Indira Gandhi’s government through the Coking Coal Mines (Nationalisation) Act, 1972 and Coal Mines (Nationalisation) Act, 1973.

2. Incorrect. Coal blocks are not allocated by lottery; after the Supreme Court cancelled earlier allocations in 2014, blocks have generally been allocated through auction and prescribed allotment procedures.

3. Incorrect. India still imports coal, especially coking coal and also thermal coal in some quantities; it is not self-sufficient in coal production.

Therefore, only statement 1 is correct.

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