With progressive delicensing of industries as part of liberalisation, which of the following is the industry that is removed from the requirement of license?

The correct answer is Coal and lignite.

Step-by-Step Explanation:

1. Concept of Liberalisation and Delicensing:
In 1991, India introduced landmark economic reforms known as the Liberalisation, Privatisation, and Globalisation (LPG) policy. A key feature of liberalisation was industrial delicensing, which abolished the requirement for obtaining industrial licenses for most industries. This was done to reduce red tape, encourage entrepreneurship, and promote market competition.

2. Retained Compulsory Licensing:
Under the New Industrial Policy of 1991, only a select few industries were kept under compulsory licensing due to reasons of environmental hazards, national security, public health, and safety. Initially, this list included eighteen industries, which was gradually pruned over the years.

3. Removal of Coal and Lignite:
Initially, coal and lignite mining were reserved for the public sector and required licensing. However, as reforms progressed, the coal mining sector was gradually opened up to private participation and delicensed to boost domestic production and meet the energy demands of the country. Consequently, coal and lignite were removed from the compulsory licensing requirement.

4. Analyzing the Options:
- Cigars and cigarettes of tobacco: Retained under compulsory licensing due to public health concerns.
- Industrial explosives: Retained under compulsory licensing due to national security and public safety concerns.
- Hazardous chemicals: Retained under compulsory licensing due to environmental safety and public health hazards.
- Coal and lignite: Delicensed to encourage private sector investment and enhance energy security.

Therefore, coal and lignite is the correct option representing the industry removed from the compulsory licensing requirements.