Correct Option
The correct option is (b).
Explanation
India possesses the fifth-largest coal reserves in the world. However, the country remains a significant importer of coal. This paradox is primarily driven by the quality of domestic coal (high ash content) and logistical constraints in matching supply with the growing demand from power and industrial sectors.
Statement-wise Analysis
- Statement 1 is Incorrect. There is no official government policy to conserve domestic coal reserves for the future by relying on imports. On the contrary, the Government of India actively promotes domestic coal production to reduce the import bill and ensure energy security (e.g., through commercial mining auctions and the mission for self-reliance). Imports are a result of necessity, not conservation strategy.
- Statement 2 is Correct. Thermal power plants constitute the backbone of India's energy sector. While domestic production is high, it often lags behind the rapidly growing demand. Additionally, logistical bottlenecks (such as railway rake availability) and production inefficiencies lead to shortages at power plants, forcing them to import thermal coal to maintain operations.
- Statement 3 is Correct. The steel industry, specifically the blast furnace route, requires coking coal (metallurgical coal) as a raw material. The majority of India's coal reserves consist of non-coking coal with high ash content, which is unsuitable for steel production. Consequently, steel companies are heavily dependent on importing high-quality coking coal, primarily from countries like Australia.
Key Takeaway: India imports coal despite large reserves because domestic coal is largely non-coking (unsuitable for steel) and has high ash content, and because domestic supply chains often fail to meet the volume required by thermal power plants.