GS Mains Model Question & Answer: What is the economic significance of extraction of coal in India without importing it and its possible environmental consequences?Comment

Q. What is the economic significance of extraction of coal in India without importing it and its possible environmental consequences?. Comment.

Model Answer:

India’s objective to increase the growth outlook and provide electricity to 300 million people will be possible by the maximum utilization of its own resources and coal is one of them.

Economic significance:

• Reduce the import bill which is caused due to Purchasing from Indonesia and Australia.
• Exploration done in India’s reserve which is fifth largest reserve in coal in the world to maximum potential.
• Providing base for the manufacturing industry and large capital industry like iron and steel.
• Create employment thus reducing burden on overloaded agricultural sector.

Hurdles in achieving this:

• Proper incentives by the Govt. to private investors
• Lack of technology and R&D facility.
• Cumbersome beauracratic process.
• Lack of proper assessment which cause environmental problems.

Environmental consequences:

Land degradation Pollution

(you can write one or two lines in land degradation and pollution as if you are giving points than you have to justify it .)

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