UPSC Prelims Practice Questions — Ministry of Coal Executes Agreements for Three Commercial Coal Blocks with Damodar Valley Corporation, Advancing India’s Energy Security and Employment Goals

Q1. Which one of the following was the first multipurpose river valley project of independent India?

  • A. Bhakra-Nangal Project
  • B. Damodar Valley Corporation
  • C. Hirakud Project
  • D. Tungabhadra Project

Q2. With reference to the Damodar Valley Corporation (DVC), consider the following statements: 1. It was constituted as a statutory corporation under the Damodar Valley Corporation Act, 1948, drawing on the model of the Tennessee Valley Authority of the United States. 2. Unlike a purely Union undertaking, it was set up with the participation of the Union Government and the Governments of the then Bihar and West Bengal. 3. It functions administratively under the Ministry of Coal, which also allotted it the three commercial coal blocks in 2026. Which of the statements given above is/are correct?

  1. It was constituted as a statutory corporation under the Damodar Valley Corporation Act, 1948, drawing on the model of the Tennessee Valley Authority of the United States.
  2. Unlike a purely Union undertaking, it was set up with the participation of the Union Government and the Governments of the then Bihar and West Bengal.
  3. It functions administratively under the Ministry of Coal, which also allotted it the three commercial coal blocks in 2026.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. The vesting orders and Coal Mine Development and Production Agreements (CMDPAs) for commercially auctioned coal blocks are executed exclusively through which one of the following?

  • A. The Nominated Authority under the Ministry of Coal
  • B. Coal India Limited
  • C. The Ministry of Mines
  • D. The Central Mine Planning and Design Institute (CMPDI)

Q4. Consider the following statements pairing a statute with its role in the coal-block allocation regime: 1. Coal Mines (Special Provisions) Act, 2015 — provided the legal framework to re-allocate coal blocks whose allocations were cancelled by the Supreme Court in 2014. 2. Mineral Laws (Amendment) Act, 2020 — omitted the end-use restriction under the CMSP Act, enabling commercial mining for sale of coal. 3. Coal Mines (Nationalisation) Act, 1973 — the statute under which the 13th tranche commercial auctions were conducted. 4. Coal Bearing Areas (Acquisition and Development) Act, 1957 — the law that removed the end-use restriction on commercial coal mining. Which of the above are correctly identified?

  1. Coal Mines (Special Provisions) Act, 2015 — provided the legal framework to re-allocate coal blocks whose allocations were cancelled by the Supreme Court in 2014.
  2. Mineral Laws (Amendment) Act, 2020 — omitted the end-use restriction under the CMSP Act, enabling commercial mining for sale of coal.
  3. Coal Mines (Nationalisation) Act, 1973 — the statute under which the 13th tranche commercial auctions were conducted.
  4. Coal Bearing Areas (Acquisition and Development) Act, 1957 — the law that removed the end-use restriction on commercial coal mining.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1, 3 and 4
  • D. 1, 2 and 4

Q5. Under the 13th tranche of commercial coal auctions, the Ministry of Coal executed Coal Mine Development and Production Agreements (CMDPAs) with the Damodar Valley Corporation for exactly how many coal blocks?

  • A. Two
  • B. Three
  • C. Five
  • D. Seven

Q6. Consider the following statements about the three coal blocks allotted to DVC: 1. Mandakini-B carries the largest geological reserves among the three blocks. 2. Pirpainti-Barahat is located in the Bhagalpur region of Bihar. 3. Dhulia North is the block for which the highest revenue share, of 12.75%, was offered. 4. The three blocks together have a cumulative Peak Rated Capacity of 49 MTPA. Which of the above is/are correctly identified?

  1. Mandakini-B carries the largest geological reserves among the three blocks.
  2. Pirpainti-Barahat is located in the Bhagalpur region of Bihar.
  3. Dhulia North is the block for which the highest revenue share, of 12.75%, was offered.
  4. The three blocks together have a cumulative Peak Rated Capacity of 49 MTPA.
  • A. 1 and 4 only
  • B. 2 and 3 only
  • C. 1, 2 and 4 only
  • D. 1, 2, 3 and 4

Q7. With respect to the ministries involved in the three commercial coal blocks allotted to DVC, which one of the following statements is correct?

  • A. The blocks were allotted by the Ministry of Coal, while the allottee DVC functions under the Ministry of Power
  • B. Both the allotment of the blocks and the allottee DVC fall under the Ministry of Coal
  • C. The blocks were allotted by the Ministry of Power, while DVC functions under the Ministry of Coal
  • D. The blocks were allotted by the Ministry of Mines, while DVC functions under the Ministry of Power

Q8. Which one of the following best represents the Ministry of Coal's flagship domestic coal production target for FY 2029-30, aligned with the Aatmanirbhar Bharat goal of import substitution?

  • A. 1.0 billion tonnes
  • B. 1.3 billion tonnes
  • C. 1.5 billion tonnes
  • D. 2.0 billion tonnes

Q9. The auction of coal mines for commercial mining in India was launched for the first time in which one of the following years?

  • A. 2015
  • B. 2018
  • C. 2020
  • D. 2024

Q10. Consider the following statements comparing India's coal-bearing formations: 1. About 98% of India's coal reserves belong to the Gondwana formation rather than the Tertiary formation. 2. Gondwana coalfields are distributed largely along the Damodar, Son, Mahanadi and Godavari river valleys. 3. Gondwana coal is geologically younger than Tertiary coal and is found mainly in Assam and Meghalaya. Which of the statements given above is/are correct?

  1. About 98% of India's coal reserves belong to the Gondwana formation rather than the Tertiary formation.
  2. Gondwana coalfields are distributed largely along the Damodar, Son, Mahanadi and Godavari river valleys.
  3. Gondwana coal is geologically younger than Tertiary coal and is found mainly in Assam and Meghalaya.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3