Q. Consider the following statements:
1.Non-coking coal is a type of coal that can be heated in the absence of air to produce coke.
2.Coal India Limited (CIL) notifies the prices of non-coking coal for different grades and sectors.
3.National Coal Index (NCI) is a price index released monthly that reflects the change of price level of coal in a particular month relative to the fixed base year..
Which of the statements given above is/are correct?
Explanation –
Statement 1 is incorrect. Coking coal is a type of coal that can be heated in the absence of air to produce coke. Coke is a solid, porous material with a high carbon content (typically over 85%). It is used in the steelmaking process to reduce iron ore to molten iron.
Non-coking coal is a type of coal that cannot be heated in the absence of air to produce coke. It is typically used for power generation, cement production, and other industrial purposes.
Coking coal has a higher carbon content and lower ash content than non-coking coal.
Statements 2 and 3 are correct. Coal India Limited (CIL) notifies the prices of non-coking coal for different grades and sectors. The subsidiaries of CIL, namely Bharat Coking Coal Limited (BCCL), Eastern Coalfields Limited (ECL), and Western Coalfields Limited (WCL), are responsible for notifying the prices of coking coal.
The National Coal Index (NCI) is a price index released monthly by the Ministry of Coal. It is a composite index that reflects the average price of coal (both coking and non-coking coal) sold through different channels, including notified prices, auction prices, and import prices. The NCI is used by the government to track coal prices and to set coal pricing policies.
The NCI is calculated with a base year of 2017-18. This means that the price of coal in any given month is compared to the price of coal in 2017-18 to calculate the NCI for that month.
Source: ForumIAS
