Despite having large reserves of coal, why does India import millions of tons of coal?
- 1.It is the policy of India to save its own coal reserves for the 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 a large quantity of coking coal which has to be imported.
Which of the statements given above is/are correct?
Answer & explanation
Answer: (b) 2 and 3 only
India imports coal because domestic supply falls short in both quality and quantity. Steel makers need coking coal that the country does not have in sufficient amount or quality. Power plants rely on imported coal to cover the shortfall in domestic availability. There is no policy of conserving domestic coal by importing instead.
- ✗ 1. Imports are not a conservation policy. Coal can be freely imported under Open General Licence. The reasons for importing are supply gaps and quality, not saving reserves for the future.
- ✓ 2. Some power plants blend imported coal with domestic coal to bridge the shortfall in domestic availability. Domestic supply is not enough for coal-based power generation.
- ✓ 3. SAIL and other steel units import coking coal mainly to bridge the gap between their requirement and indigenous availability, and to improve quality.
Remember · India imports coking coal for steel because of gaps in quantity and quality, and non-coking coal to cover power-sector shortfalls. Coal imports are free under Open General Licence; they are not a policy for saving reserves.
Sources
- Ministry of Coal – Import and Export ↗ “Coking Coal is being imported by 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.”
- PIB, Ministry of Coal – Import Policy for Coal (24 July 2014) ↗ “imported coal is being blended with domestic coal (in some power plants) to bridge the shortfall in domestic availability of coal.”
Question: UPSC Civil Services (Preliminary) 2012, General Studies Paper I. Explanation: Minimalist IAS, checked 25 Oct 2026 (how we verify). ·
