UPSC Prelims 2019 · Question 88 of 99
UPSC Prelims 2019 question on Coal Sector Nationalisation
- ExamUPSC CSE
- Year2019
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicIndustry
- DifficultyEasy
- TypeStatement
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 product.
Which of the statements given above is/are correct?
Show answer
Answer: A. 1 only
Verdict
Correct statement: 1 only → Option (a).
Statement by statement
Statement 1 – CORRECT: Adequate capital investment to meet the burgeoning energy needs of the country was not forthcoming from the private coal mine owners. The Central Government took a decision to nationalise the private coal mines. The nationalisation was done in two phases, the first with the coking coal mines in 1971-72 and then with the non-coking coal mines in 1973. Indira Gandhi was the Prime Minister of the country from 1971-1973. Statement 1 is correct.
Statement 2 – INCORRECT: After the Supreme Court cancelled the coal block allocations in 2014, to manage and reallocate the cancelled blocks in a transparent and accountable manner, the Coal Mines (Special Provisions) Act, 2015 was enacted. Enabling provisions were made in the above said Act for allocation of coal blocks by way of auction. Hence coal blocks are not allocated on lottery basis.
Statement 3 – INCORRECT: India still imports coal to meet domestic demand; it is not self-sufficient in coal.