UPSC Prelims 1999 · General Studies

Question 60: Economy and Social Development

Which one of the following is the objective of National Renewal Fund?

aTo safeguard the interests of workers who may be affected by technological upgradation of industry or closure of sick units

bTo develop the core sector of the economy

cFor the development of infrastructure such as energy, transport, communications and irrigation

dFor human resource development such as full literacy, employment, population control, housing and drinking water

AnswerThe answer is (a).

The National Renewal Fund, set up in the early 1990s along with the economic reforms, was meant to cushion workers against the cost of restructuring: it financed retraining, redeployment and voluntary retirement for workers hurt by technological upgrading or by the closure of sick industrial units. It was not for infrastructure or social development. Remember: the NRF was a social safety net for workers during reform.

Why each option is right or wrong

(a) Right. It protected workers affected by modernisation or closure of sick units.
(b) Wrong. It was not a fund for developing core sectors.
(c) Wrong. Infrastructure is financed through other routes, not the NRF.
(d) Wrong. Human resource development schemes were financed separately.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 1999, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.