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Economy2012
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
  2. Most of the power plants in India are coal-based and
  3. Steel companies need a large quantity of coking coal
which has to be imported. Which of the statements given above is/are correct?

Explanation

The correct option is 2 and 3 only because India's domestic coal production has often struggled to meet the escalating demand from multiple sectors, especially power generation, attributed to infrastructural inefficiencies and supply chain issues. Additionally, the steel industry specifically requires coking coal, which is not produced in sufficient quantities domestically, thus necessitating imports to satisfy industrial needs. This reflects the broader concept of resource management and energy security in a developing economy, where domestic supply limitations can lead to reliance on international markets to support industrial growth and energy needs.

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