2012 CSAT, all questions

UPSC Prelims 2012 · CSAT

Question 79: Decision Making and Interpersonal Skills

You are involved in setting up a water supply project in a remote area. Full recovery of cost is impossible in any case. The income levels in the area are low and 25% of the population is below poverty line (BPL). When a decision has to be taken on pricing you would...

aRecommend that the supply of water be free of charge in all respects.
bRecommend that the users pay a one time fixed sum for the installation of taps and the usage of water be free.
cRecommend that a fixed monthly charge be levied only on the non-BPL families and for BPL families water should be free.
dRecommend that the users pay a charge based on the consumption of water with differentiated charges for non-BPL and BPL families.

AnswerUPSC’s answer is (c) or (d).

UPSC's key accepts (c) and (d). Full cost recovery is impossible, but charging something still supports the scheme, while a quarter of the population is below the poverty line, so the poor should not be priced out. Option (c) charges a fixed monthly amount to non-BPL families only; option (d) charges by consumption with different rates for BPL and non-BPL families. Both protect the poor and recover part of the cost. Free water for all (a) or a one-time fee with unlimited use (b) invites waste and recovers little.

Why each option is right or wrong
  • (a) Not accepted. Free water for all gives no cost recovery and invites wastage.
  • (b) Not accepted. A one-time payment with free use does not cover running costs and encourages waste.
  • (c) Accepted. Non-BPL families contribute and BPL families are protected.
  • (d) Accepted. Consumption-based, differentiated charges link payment to use while protecting the poor.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2012, General Studies Paper II (CSAT), Series A. The paper on upsc.gov.in.