Economics Miscellaneous (Part – I)

Total Questions: 50

1. In August 2006, the Government of India notified the Rural Electrification Policy. This Policy aims at provision of access to electricity all household by which year? [I.A.S. (Pre) 2008]

(a) 2008
(b) 2009
(c) 2010
(d) 2012

Correct Answer: (b) 2009

Solution:On 23 August 2006, the Government of India notified the Rural Electrification Policy. The main targets of this Policy were:

• Provision of access to electricity to all households by year 2009.

• Quality and reliable power supply at reasonable rates.

• Minimum lifeline consumption of 1 unit per household per day as a merit good by year 2012.

2. With reference to Power Sector in India, consider the following statements: [I.A.S. (Pre) 2002]

1. Rural electrification has been treated as a Basic Minimum Service under the Prime Minister's Gramodaya Yojana.

2. 100 percent Foreign Direct Investment in power is allowed without upper limit.

3. The Union Ministry of Power has signed a Memorandum of Understanding with 14 States.

Which of these statements is/are correct?

(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 3 only

Correct Answer: (c) 2 and 3 only

Solution:Pradhan Mantri Gramodaya Yojana focusses on the creation of social and economic infrastructure in five critical areas with the objective of improving the quality of life of people specially in rural areas. Schemes related to health, education, drinking water, housing and rural roads would be undertaken within this programme. Later on, rural electrification was added in this scheme as a subsidiary service (not as a basic). Hence statement 1 is not correct. Statement 2 and 3 are correct with reference to the question period.

3. According to the Union Budget 2006-07, the Government aimed to raise the power generation capacity by 15,000 MWs by: [U.P.P.C.S. (Mains) 2005]

(a) March 2007
(b) March 2008
(c) March 2009
(d) March 2010

Correct Answer: (a) March 2007

Solution:As per the question period, option (a) was the correct answer. As per the latest data, India has total installed capacity of 444757 MW as on 31 May, 2024.

1. Sector	Installed Capacity (MW)	Percent (%)
a. State sector	107671	24.2
b. Central sector	104453	23.5
c. Private sector	232633	52.3
Total	444757	100.0

2. Fuel Type	Installed Capacity (MW)	Installed Capacity (MW)
a. Thermal	242997	54.6
i. Coal	210970	47.4
ii. Lignite	6620	1.5
iii. Gas	24818	5.6
iv. Diesel	589	0.1
b. Hydro	46928	10.6
c. Nuclear	8180	1.8
d. RES (MNRE)	146652	33.0
Total	444757	100.0

4. What has been the approximate share of renewable energy out of the total generation capacity in the energy sector of India as on Dec. 2011? [U.P.P.C.S. (Mains) 2012]

(a) 11%
(b) 8%
(c) 5%
(d) 2%

Correct Answer: (a) 11%

Solution:The approximate share of renewable energy out of the total generation capacity in the energy sector of India as on December, 2011 was about 11%. According to the latest data, installed capacity of renewable energy in India (excluding large hydro) has reached at the level of 146652 MW, which is 33.0 percent of total installed capacity (444757 MW) of India as on 31.5.2024.

5. Which one of the following is not the objective of current National Electricity Policy? [U.P.P.C.S. (Mains) 2005]

(a) Access to electricity available for all households in next five years
(b) Fulfill the electric power demand by 2012
(c) Protection of consumer's interest
(d) Reduce the per unit price of electricity

Correct Answer: (d) Reduce the per unit price of electricity

Solution:Reducing the per unit price of electricity was not an objective of National Electricity Policy (NEP) 2002-07, while other three were included in the NEP.

6. To reduce the interest payment on the Electricity sector, which scheme has been launched by the Government of India? [U.P. R.O/A.R.O. (Mains) 2021]

(a) UJALA Scheme
(b) Urja Ganga Scheme
(c) UDAY Scheme
(d) Saubhagya Scheme

Correct Answer: (c) UDAY Scheme

Solution:UDAY (Ujwal Discom Assurance Yojana), a Scheme for the financial turnaround of Power Distribution Companies (DISCOMs), has been approved by the Government of India in November, 2015 with an objective to improve the operational and financial efficiency of the State DISCOMS. The scheme aims to reduce the interest burden, reduce the cost of power, reduce power losses in the distribution sec- tor, rationalization of coal prices, reduction in fuel cost through coal swapping, etc. It provides permanent solutions to legacy debts of the State DISCOMs and addresses as potential future losses.

7. Which one of the following is a purpose of 'UDAY', a scheme of the Government? [I.A.S. (Pre) 2016]

(a) Providing technical and financial assistance to start- up entrepreneurs in the field of renewable sources of energy
(b) Providing electricity to every household in the country by 2018
(c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time
(d) Providing for financial turnaround and revival of power distribution companies

Correct Answer: (d) Providing for financial turnaround and revival of power distribution companies

Solution:Ministry of Power, Government of India launched Ujwal DISCOM Assurance Yojana (UDAY) which was approved by Union Cabinet on 5th November, 2015. The scheme envisages: Financial turnaround and revival of power distribution companies, Operational improvement, Reduction cost of generation of power, Development of Renewable Energy and Energy efficiency and conservation.

8. Which of the following is not correctly matched? [U.P. R.O./A.R.O. (Pre) 2021]

(a) Primary Energy-Tidal Power
(b) Commercial Energy - Oil and Gas
(c) Non-Commercial Energy-Animal Dung
(d) Non-Conventional Energy - Solar Energy

Correct Answer: (a) Primary Energy-Tidal Power

Solution:Primary energy is the energy embodied in natural resources prior to undergoing any human-made conversions or trans- formations. It is energy contained in raw fuels, and other forms of energy, including waste, received as input to a system. Examples of primary energy resources include coal, crude oil, sunlight, wind, running rivers, vegetation, and uranium. It is to be noted that tides are a form of primary energy resource but tidal power is a form of human-con- verted secondary energy. Hence, option (a) is not correctly matched. Unaта

9. Consider the following statements. Regional disparities in India are high and have been rising in recent years because: [I.A.S. (Pre) 1999]

1. There is persistent investment over time only in select

2. Some areas are agro-climatically less conducive to aland development.

3. Some areas continue to face little or no agrarian transformation and the consequent lack of social and economic opportunities.

4. Some areas have faced continuous political instability.

Which of the above statements are correct?

(a) 1, 2 and 3
(b) 1, 2 and 4
(c) 1, 3 and 4
(d) 2, 3 and 4

Correct Answer: (a) 1, 2 and 3

Solution:Regional disparity is the co-existence of developed and economically backward States and the difference in progress in different areas of each State. Where on the one hand Punjab, Maharashtra, Haryana, Gujarat, West Bengal, Kerala and Tamil Nadu are economically developed States, while Madhya Pradesh, Assam, Uttar Pradesh, Rajasthan, Odisha, Bihar etc. are economically backward States. Statement 1, 2 and 3 are the main factors responsible for this regional disparity in India.

10. The East-West corridor of the Golden Quadrilateral connects which of the following centers (nodes)? [M.P.P.C.S. (Pre) 2019]

(a) Silchar and Porbander
(b) Guwahati and Ahmedabad
(c) Kandla and Tinsukia
(d) Itanagar and Jamnagar

Correct Answer: (a) Silchar and Porbander

Solution:The East-West corridor connects Silchar and Porbander while the North-South corridor connects Srinagar with Kanyakumari. Jhansi is the junction of North-South and East-West corridors. The Golden Quadrilateral connects four major metro cities of India, viz., Delhi (North), Kolkata (East), Mumbai (West) and Chennai (South).

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