Q. 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 only
  • 2 and 3 only
  • 3 only
  • 1, 2 and 3

Answer: (a) 1 only

Notes:
  • The coal sector was nationalized in two phases under Indira Gandhi Government in 1972. The Coal Mines (Nationalisation) Act, 1973 was enacted during the Prime Ministership of Indira Gandhi.
  • Presently, coal blocks are allocated through auctions and not on a lottery basis.
  • The coal sector is the monopolistic sector in India. India holds 5th biggest coal reserves in the world but due to incapacity of coal production by monopolistic firms, it imports coals to meet the shortages of domestic supply. But still the country is not self-sufficient in coal production.
Coal
  • It is a type of fossil fuel found in the form of sedimentary rocks and is often known as ‘Black Gold’.
  • It is a conventional source of energy and is widely available. It is used as a domestic fuel, in industries such as iron and steel, steam engines and to generate electricity. Electricity from coal is called thermal power.
  • The leading coal producers of the world include China, US, Australia, Indonesia, India.
  • Distribution of Coal in India:
    • Gondwana Coal Fields (250 million years old):
      • Gondwana coal makes up to 98 % of the total reserves and 99 % of the production of coal in India.
      • Gondwana coal forms India’s metallurgical grade as well as superior quality coal.
      • It is found in Damodar (Jharkhand-West Bengal), Mahanadi (Chhattisgarh-Odisha), Godavari (Maharashtra), and Narmada valleys.
    • Tertiary Coal Fields (15 – 60 million years old):
      • Carbon content is very low but is rich in moisture and Sulphur.
      • Tertiary coalfields are mainly confined to extra-peninsular regions
      • Important areas include Assam, Meghalaya, Nagaland, Arunachal Pradesh, Jammu and Kashmir, Himalayan foothills of Darjeeling in West Bengal, Rajasthan, Uttar Pradesh, and Kerala.