UPSC Prelims 2002 · General Studies
Question 132: Economy and Social Development
With reference to power sector in India consider the following statements:
- 1.Rural electrification has been treated as a Basic Minimum Service under the Prime Minister’s Gramodaya Yojana.
- 2.100 per cent Foreign Direct Investment in power is allowed without upper limit
- 3.The Union Ministry of Power has signed a Memoranda of Understanding with 14 states.
Which of these statements is/are correct?
AnswerThe answer is (b).
Statement 1 is true: rural electrification was treated as a Basic Minimum Service under the Pradhan Mantri Gramodaya Yojana. Statement 2 is true: 100 percent foreign direct investment was allowed in the power sector under the automatic route, with no upper limit. Statement 3 is not accepted by the given answer: the number of states with which the Power Ministry had signed MoUs was not 14.
- 1. Rural electrification was a Basic Minimum Service under the Gramodaya Yojana.
- 2. 100 percent FDI in power was allowed without an upper limit.
- 3. Not accepted by the given answer; the count of states in the MoUs was not 14.
How you could have got this
- If you were sure statement 1 is correct, (c) and (d) go: each of them leaves 1 out.
What you needed to know: Rural electrification was a Basic Minimum Service under the Gramodaya Yojana.
- Then, if you were sure statement 2 is correct, (a) goes: it leaves 2 out.
What you needed to know: 100 percent FDI in power was allowed without an upper limit.
Only (b) is left. You didn’t need statement 3.
This follows an unofficial answer: UPSC has not published its key for this year, and if that answer is wrong, so is this path.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Leaves out statement 2, which is also true.
- (b) Right: statements 1 and 2.
- (c) Includes 3, which is not accepted, and leaves out 1.
- (d) Statement 3 alone is not accepted.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2002, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.