Question

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 cooking coal which has to be imported.

Which of the statements given above is / are correct?

• A. a. Only 1
  
• B. b. 2 and 3
  
• C. c. 1 and 3
  
• D. d. 1, 2 and 3
  

Answer 1

The correct option is B b. 2 and 3


Answer-b
India has the world's 4th largest coal reserves. In India, coal is the bulk of primary energy contributor with 54.5% share out of the total 595 Mtoe in 2013.India is the third top coal producer in 2013 with 7.6% production share of coal (including lignite) in the world. However, India ranks fifth in global coal production at 228 mtoe (5.9%) in 2013 when its inferior quality coal tonnage is converted into tons of oil equivalent.Coal-fired power plants account for 59% of India's installed electricity capacity. India imported nearly 95 Mtoe of steam coal and coking coal which is 29% of total consumption to meet the demand in electricity, cement and steel production.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 large quantity of cooking coal which has to be imported.