Consider the following statements:
- 1.Coal sector was nationalized by the Government of India under Indira Gandhi.
- 2.Now, coal blocks are allocated on lottery basis.
- 3.Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production.
Which of the statements given above is/are correct?
Answer & explanation
Answer: (a) 1 only
Only statement 1 is correct. Coking coal mines were nationalised in 1971-72 and non-coking coal mines in 1973, while Indira Gandhi was Prime Minister. Coal blocks are given out by competitive auction, not by lottery, and India still imports coal.
- ✓ 1. The Central Government nationalised private coal mines in two phases: coking coal mines in 1971-72 and non-coking coal mines in 1973 (Coal Mines (Nationalisation) Act, 1973). Indira Gandhi was Prime Minister from 1966 to 1977.
- ✗ 2. Blocks are now allotted through competitive bidding, that is auctions, conducted by the Nominated Authority under the Coal Mines (Special Provisions) Act, 2015. There is no lottery.
- ✗ 3. India is not self-sufficient. It still imports coking coal and high-grade thermal coal that its domestic reserves do not supply in sufficient quantity.
Remember · Coal was nationalised in 1971-73 under Indira Gandhi; blocks are now auctioned (not lotteried), and India still imports coking coal.
Sources
- History and background, Ministry of Coal, Government of India ↗ “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.”
- Shrimati Indira Gandhi, Former Prime Ministers, Prime Minister's Office ↗ “Then she held the highest office as the Prime Minister of India from January 1966 to March 1977.”
- Auction/Allotment, Nominated Authority, Ministry of Coal ↗ “From an earlier restrictive model, we have moved on to granting coal mining blocks pursuant to a competitive bidding process, and from prescribing specific end-use to permitting commercial sale of coal.”
- About the Nominated Authority, Ministry of Coal ↗ “Nominated Authority is appointed under the section 6(1) of the Coal Mines (Special Provisions) Act, 2015 and has been vested with the overall responsibility as highlighted below: to conduct the auction process and allotment”
- India's coal imports see marginal increase, Ministry of Coal (PIB, 25 Sept 2024) ↗ “the current consumption landscape reveals a critical need for imports, particularly for coking coal and high-grade thermal coal, which are not sufficiently available within domestic reserves.”
Question and answer: UPSC's official GS Paper I (2019, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·