UPSC Prelims Practice Questions — Empowering India’s Energy Markets: Coal Exchange for Viksit Bharat

Q1. With reference to the Mines and Minerals (Development and Regulation) Amendment Act, 2025 vis-à-vis the parent MMDR Act, 1957, consider the following statements: 1. The MMDR Act, 1957 continues to be the parent statute regulating the mining sector in India, and the 2025 amendment operates by inserting new provisions into it. 2. Section 18B, newly inserted by the 2025 amendment, empowers the Central Government to promote trading of minerals, their concentrate or processed forms including metals through mineral exchanges. 3. While the parent MMDR Act, 1957 was a Union legislation, the MMDR Amendment Act, 2025 received Presidential assent in August 2025 and came into force from 1st January 2026. Which of the statements given above is/are correct?

  1. The MMDR Act, 1957 continues to be the parent statute regulating the mining sector in India, and the 2025 amendment operates by inserting new provisions into it.
  2. Section 18B, newly inserted by the 2025 amendment, empowers the Central Government to promote trading of minerals, their concentrate or processed forms including metals through mineral exchanges.
  3. While the parent MMDR Act, 1957 was a Union legislation, the MMDR Amendment Act, 2025 received Presidential assent in August 2025 and came into force from 1st January 2026.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q2. Under which of the following sections of the Mines and Minerals (Development and Regulation) Act, 1957, as amended in 2025, is the Central Government specifically empowered to promote the development of markets for trading of minerals, their concentrate or processed forms (including metals) through mineral exchanges?

  • A. Section 17A
  • B. Section 18
  • C. Section 18B
  • D. Section 20A

Q3. Under the Coal Exchange Rules, 2026, which one of the following has been designated as the authority for registering Coal Exchanges in India?

  • A. Securities and Exchange Board of India (SEBI)
  • B. Central Electricity Regulatory Commission (CERC)
  • C. Coal India Limited (CIL)
  • D. Coal Controller Organisation (CCO)

Q4. In the context of the Mines and Minerals (Development and Regulation) Amendment Act, 2025, the term 'Mineral Exchange' is best defined as which one of the following?

  • A. A bilateral long-term supply contract between captive miners and end-use consumers for fixed-price delivery of minerals
  • B. A registered electronic trading platform or marketplace for trading minerals, their concentrate or processed forms, including metals
  • C. A government-operated e-auction window run exclusively by Coal India Limited under the SHAKTI policy for the power sector
  • D. An international clearinghouse that facilitates cross-border swap of strategic and critical mineral reserves among member states

Q5. Where is the headquarters of the Coal Controller's Organisation, the subordinate office of the Ministry of Coal that has been designated as the authority to register and regulate Coal Exchanges in India, located?

  • A. Dhanbad
  • B. Kolkata
  • C. Nagpur
  • D. Ranchi

Q6. In the context of India's coal sector governance, the term 'Coal Controller's Organisation' is best described as which one of the following?

  • A. A statutory regulator established under the Mines and Minerals (Development and Regulation) Act, 1957 with quasi-judicial powers over mineral concessions
  • B. An attached office of the Ministry of Coal constituted as a Public Sector Undertaking for commercial coal trading
  • C. A subordinate office of the Ministry of Coal discharging statutory functions including grade declaration of coal, inspection of collieries and acting as appellate authority in grade-related disputes
  • D. An autonomous body under the Ministry of Mines acting as the statistical agency for all minerals including coal and lignite

Q7. Under the SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) framework for coal allocation to the power sector, consider the following entities: 1. Central Sector thermal power projects including their joint ventures 2. State Government-owned generating companies (State Gencos) 3. Captive power plants of industries that do not hold a Power Purchase Agreement 4. Independent Power Producers identified through Tariff Based Competitive Bidding Which of the above is/are correctly identified as eligible recipients of coal linkages under the SHAKTI framework?

  1. Central Sector thermal power projects including their joint ventures
  2. State Government-owned generating companies (State Gencos)
  3. Captive power plants of industries that do not hold a Power Purchase Agreement
  4. Independent Power Producers identified through Tariff Based Competitive Bidding
  • A. 1 and 2 only
  • B. 3 and 4 only
  • C. 1, 2 and 4
  • D. 1, 2, 3 and 4

Q8. With reference to the Revised SHAKTI Policy approved by the Cabinet Committee on Economic Affairs in 2025 vis-à-vis the original SHAKTI Policy of 2017, consider the following statements: 1. The Revised SHAKTI Policy, 2025 consolidates the multiple paragraphs of coal-linkage routes in the 2017 policy into only two Windows. 2. Unlike the 2017 policy, the 2025 revision restricts coal linkages exclusively to Central Sector Gencos and excludes State Gencos and Independent Power Producers. 3. The original SHAKTI Policy of 2017 marked a shift from a nomination-based coal allocation regime to allocation through auction or tariff-based competitive bidding. Which of the statements given above is/are correct?

  1. The Revised SHAKTI Policy, 2025 consolidates the multiple paragraphs of coal-linkage routes in the 2017 policy into only two Windows.
  2. Unlike the 2017 policy, the 2025 revision restricts coal linkages exclusively to Central Sector Gencos and excludes State Gencos and Independent Power Producers.
  3. The original SHAKTI Policy of 2017 marked a shift from a nomination-based coal allocation regime to allocation through auction or tariff-based competitive bidding.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q9. Which one of the following best describes the ownership structure of Singareni Collieries Company Limited (SCCL)?

  • A. A wholly-owned subsidiary of Coal India Limited functioning under the Ministry of Coal
  • B. A joint-sector undertaking of the Government of Telangana and the Government of India, with the State Government holding the majority equity
  • C. A Central Public Sector Enterprise wholly owned by the Government of India under the Ministry of Mines
  • D. A private listed company in which the Government of Telangana retains a minority golden share

Q10. Consider the following statements regarding the subsidiaries of Coal India Limited (CIL): 1. Mahanadi Coalfields Limited, headquartered at Sambalpur, is a subsidiary of CIL. 2. Singareni Collieries Company Limited, headquartered at Kothagudem, is a subsidiary of CIL. 3. Northern Coalfields Limited, headquartered at Singrauli, is a subsidiary of CIL. 4. Western Coalfields Limited, headquartered at Nagpur, is a subsidiary of CIL. Which of the statements given above is/are NOT correct?

  1. Mahanadi Coalfields Limited, headquartered at Sambalpur, is a subsidiary of CIL.
  2. Singareni Collieries Company Limited, headquartered at Kothagudem, is a subsidiary of CIL.
  3. Northern Coalfields Limited, headquartered at Singrauli, is a subsidiary of CIL.
  4. Western Coalfields Limited, headquartered at Nagpur, is a subsidiary of CIL.
  • A. 1 and 3 only
  • B. 2 only
  • C. 2 and 4 only
  • D. 1, 3 and 4 only

Q11. The Coal Exchange — a market-reform pillar of India's Viksit Bharat 2047 energy strategy — derives its statutory authority from which one of the following?

  • A. Section 18B of the Mines and Minerals (Development and Regulation) Act, 1957, as amended in 2025
  • B. Section 11A of the Mines and Minerals (Development and Regulation) Act, 1957
  • C. Section 3 of the Coal Mines (Special Provisions) Act, 2015
  • D. Section 31 of the Coal Bearing Areas (Acquisition and Development) Act, 1957

Q12. With reference to India's Viksit Bharat 2047 energy strategy as compared to its earlier climate and coal-sector commitments, consider the following statements: 1. India's Net-Zero greenhouse gas emissions target year is later than its Viksit Bharat developmental milestone year. 2. India has already achieved a 50% share of non-fossil fuel sources in its installed electricity capacity ahead of the 2030 target it had committed to. 3. Under the Viksit Bharat 2047 roadmap, the Ministry of Coal has revised the domestic coal production target downward to 1 billion tonnes by 2029-30, in line with the net-zero glidepath. Which of the statements given above is/are correct?

  1. India's Net-Zero greenhouse gas emissions target year is later than its Viksit Bharat developmental milestone year.
  2. India has already achieved a 50% share of non-fossil fuel sources in its installed electricity capacity ahead of the 2030 target it had committed to.
  3. Under the Viksit Bharat 2047 roadmap, the Ministry of Coal has revised the domestic coal production target downward to 1 billion tonnes by 2029-30, in line with the net-zero glidepath.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q13. Within how many years of the merger of the Forward Markets Commission with the Securities and Exchange Board of India (SEBI) was a single recognised stock exchange permitted to operate equity, commodity derivatives, currency derivatives and debt segments together?

  • A. One year
  • B. Three years
  • C. Five years
  • D. Seven years

Q14. In the context of India's market regulatory architecture, the term 'commodity derivatives exchange' most precisely refers to which one of the following?

  • A. An electronic spot market for agricultural produce regulated by the State Agricultural Produce Market Committees under respective State APMC Acts
  • B. A recognised stock exchange under the Securities Contracts (Regulation) Act, 1956 on which futures and options contracts on commodities are traded under SEBI regulation
  • C. A self-regulatory association of bullion and metal dealers recognised under the Forward Contracts (Regulation) Act, 1952
  • D. A clearing and registering authority for physical trading of notified minerals constituted under the Mines and Minerals (Development and Regulation) Act, 1957