Consider the following statements:Coal sector was nationalized by the Government of India under Indi

Question

Consider the following statements:Coal sector was nationalized by the Government of India under Indira Gandhi.Now, coal blocks are allocated on lottery basis.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?

Accepted Answer

Adequate capital investment to meet the burgeoning energy needs of the country was not forthcoming from the private coal mine owners. Unscientific mining practices adopted by some of them and poor working conditions of labour in some of the private coal mines became matters of concern for the Government. On account of these reasons, 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 is not correct - 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 mines by way of auction and allotment for the sale of coal.’In a recent notification by the Government on 20th February, the government opened up commercial coal mining for the private sector on February 20, and approved the methodology for auction of coal mines / blocks for sale of coal.There will be an ‘ascending forward auction’ -- a two-stage online auction comprising (i) technical bid and (ii) financial bid with initial and final price offers. The bid parameter will be the price offer in ₹/tonne which will be paid to the State government on the actual production of coal.Statement 3 is not correct - India is still one of the largest importer of Coal. Domestic coal has been able to meet only 75% of our annual coal demand. The shortfall in local coal availability is met through imports of around 200 mt.