Despite having large reserves of coal, why does India import millions of tones 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 coking coal which has to be imported. Which of the statements given above is/are correct?

India's coal imports are driven by structural supply-demand gaps and quality requirements rather than a policy to conserve domestic reserves. Statement 1 is incorrect as India actively seeks to increase domestic production to reduce import dependence [3]. Statement 2 is correct because most Indian power plants are coal-based and frequently face domestic supply shortages, necessitating imports for blending to meet demand [3]. Statement 3 is correct because the Indian steel industry requires high-grade coking coal for metallurgical purposes, which is scarce in India [2]. Domestic coal is primarily non-coking with high ash content, making it unsuitable for steel production without blending with imported high-quality coking coal [4]. Consequently, while India has large reserves, the mismatch in quality (coking coal) and quantity (supply for power) makes millions of tonnes of imports essential [3].

Sources

1. [1] https://www.oecd.org/content/dam/oecd/en/publications/reports/2002/07/coal-in-the-energy-supply-of-india_g1gh2a9e/9789264175945-en.pdf
2. [3] https://www.pib.gov.in/PressReleasePage.aspx?PRID=2118788
3. [2] https://www.niti.gov.in/sites/default/files/2024-11/Report_Enhancing%20Domestic%20Coking%20Coal%20Availability%20to%20Reduce%20the%20Import%20of%20Coking%20Coal.pdf
4. [4] https://www.orfonline.org/public/uploads/posts/pdf/20240812112407.pdf