QUESTION

Easy

Economy

Prelims 2019

Consider the following statements:

  1. CoaI sector was nationalized by the Government of India under Indira Gandhi.
  2. Now, coal blocks are allocated on a lottery basis.
  3. Till recently, India imported coal to meet the shortage of domestic supply, but now India is self- sufficient in coal production.

Which of the statements given above is/arc correct?

Select an option to attempt

Explanation

Nationalisation: Yes, the coal sector was nationalised by the Indira Gandhi government in phases during the 1970s. Hence, Statement 1 is Correct.

Coal block allocation: Coal blocks are not allocated through a lottery system. They are currently allocated through auctions, a shift from the previous system of administrative allocation. Hence, Statement 2 is Incorrect.

Coal self-sufficiency: India is not entirely self-sufficient in coal production. While domestic production has increased, there is still a gap that is met through imports. Hence, Statement 3 is Incorrect.

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