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 coking coal which has to be imported. Which of the statements given above is/are correct?

The correct answer is B. Statements 2 and 3 are right; statement 1 is not.

• Statement 1 is wrong. India has no policy of keeping domestic coal in reserve while importing for current use. Imports happen because domestic supply falls short of demand in several segments, and because much of Indian non-coking coal has high ash content, so plants blend in imported coal to run efficiently.
• Statement 2 is right. Around 70 percent of India's electricity comes from coal-based thermal plants. Coal India Limited has struggled with production and logistics, so many plants get less coal than their Fuel Supply Agreements provide and import to keep running, especially coastal plants.
• Statement 3 is right. Steel making needs metallurgical (coking) coal with low ash, low sulphur and good coking properties. India's coking coal is mostly low-grade and high in ash, so steel companies depend on imports, largely from Australia.

Core concept: reserves are not the same as usable supply. Quality, mining capacity and logistics decide what gets used. This links to energy security and import dependence, a recurring Mains theme.

Trap: assuming large reserves mean self-sufficiency. Check whether the coal is the right grade and whether it can actually be mined and moved.