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 a large quantity of coking coal which has to be imported. Which of the statements given above is/are correct?

QUESTION

Hard

Economy

Prelims 2012

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

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.
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.
Steel companies need a large quantity of coking coal which has to be imported.

Which of the statements given above is/are correct?

Select an option to attempt

Explanation

India does not have a policy of intentionally conserving its domestic coal reserves for the future and importing coal for current use.

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. This is due to various factors such as insufficient domestic production, logistical constraints, and quality issues.

Steel companies need a large quantity of coking coal, which has to be imported. India's domestic reserves of coking coal are not sufficient to meet the demand of its steel industry, hence the need for imports.

Therefore, the second and third statements are correct.

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