UPSC Prelims 2003 · General Studies

Question 34: Economy and Social Development

The government holding in BPCL is

aMore than 70%

bBetween 60% and 70%

cBetween 50% and 60%

dLess than 50%

AnswerThe answer is (b).

The Government of India held about 66 per cent of BPCL (Bharat Petroleum Corporation Ltd) in 2003, which falls in the 60 to 70 per cent band. The question was in the news because in September 2003 the Supreme Court ruled that BPCL and HPCL could not be privatised without Parliament's approval. Remember: in 2003 BPCL was a government-owned oil marketing company with about two-thirds government equity.

Why each option is right or wrong

(a) The government held less than 70 per cent.
(b) Correct: about 66 per cent.
(c) The stake was higher than the 50 to 60 per cent band.
(d) The government was the majority owner, so less than 50 per cent is wrong.

Worth knowing: The government's stake in BPCL has since fallen to about 53 per cent, so the band applies only to the 2003 position.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2003, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.