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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 them 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?       

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 them 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?        Correct Answer 2 and 3 only

The correct answer is 2 and 3 only.

Key Points

  • The lack of coking coal reserves that are used as a raw material in steelmaking and allied industries is the main reason India imports millions of tonnes of coal.
  • Coal in India is used either from domestic sources, mostly mined by coal India, or is imported. The imports are mainly to compensate for the lack of good quality coal, especially coking coal from the mining sources in the country.
  • Coking coal is imported by the state-run Steel Authority of India Limited (SAIL) and other steel manufacturing units mainly to bridge the gap between the requirement and indigenous availability and to improve the quality. Hence, statement 3 is correct.
  • India does not have enough reserves for good quality coking coal and most of it is imported from Indonesia, South Africa, Russia, and Australia. Hence, statement 2 is correct. 
  • Experts say, it is this requirement of coking coal added with power plants whose boilers are designed to run only on imported coal, which is likely to continue importing coal in the coming years.
  • The coal requirement will not end any time soon.
    • Älso, we have power plants at the coasts which are based on imported coal.
    • Their boilers are designed only for imported coal. They will continue to use imported coal.
    • So, it is only the third category of thermal power plants which were using imported coal as a substitute for domestic coal because if its scarcity, which we can do something about.
  • Thus, India imports millions of tonnes of coal due to a lack of availability of good coal. Hence, statement 1 is not correct. 

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