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 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 large quantity of coking coal which has to be imported.
Which of the statements given above is/are correct?
Correct Answer: Option B
Explanation
1. Statement 1 is incorrect. While managing resources for the future is a consideration, it is not the stated policy of India to deliberately save its own coal reserves and rely primarily on imports. India actively mines its large reserves; imports occur due to specific demand-supply gaps and quality requirements.
2. Statement 2 is correct. A significant portion of India's electricity generation comes from coal-based power plants. Despite domestic production, these power plants often face challenges in getting sufficient supplies of the right quality coal consistently from domestic sources due to logistical issues, production constraints, and geographical mismatch between coalfields and power plants. Hence, imports (especially of thermal coal) become necessary to bridge the gap and ensure smooth operation.
3. Statement 3 is correct. The Indian steel industry requires high-quality coking coal for metallurgical processes. India's domestic reserves of high-grade coking coal are limited and insufficient to meet the large quantity demanded by steel companies. Consequently, a substantial portion of the coking coal requirement has to be imported.
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