Explanation:

Bits on Coal import and Usage
First statement is correct – We are more dependent on coal Around 54 % of the total installed electricity generation capacity is coal based in India and 67% of the capacity planned to be added during the 11 Five year Plan period (2007-12), is also coal based. Furthermore, over 70 % of the electricity generated is from coal based power plants. These data prove the coal dependence of Indian economy. Second statement is incorrect – Maximum use of imported coal is in Iron and Steel Industry At present, India imports about 85 million tons of coal. Out of this, about 25 million tons is metallurgical coking coal for the iron & steel industry. The balance is thermal coal used by power plants (50%), cement industry (17%) and other industries (33%). Presently, main sources of thermal coal imports are Indonesia, Australia, New Zealand and South Africa. Canada, Mozambique and the USA are amongst the emerging supply sources. Present coal handling capacity at the ports is around 85-90 million tons per annum. This has to be augmented to at least 120 million tons per annum in next two years. Further it has to be doubled the present capacity by the end of the 12 Five Year Plan period.