Industrial Sector (Part – II)

Total Questions: 60

51. Which Statement is not correct about the fertilizer industry of India?( [U.P.U.D.A./L.D.A. (Pre) 2001]

Correct Answer: (c) India is self-reliant with respect to chemical fertilizers.
Solution:As per the data of question period, only statement of option (c) was incorrect, but according to present data, statements of option (b) and (c) are incorrect.

As of now, India has achieved above 85% self-sufficiency in production capacity of Urea, while above 50% indigenous capacity has been developed in respect of phosphatic fertilizers to meet domestic requirements. For potash, since there are no viable sources/reserves in the country, its entire requirement is met through imports.

The rapid build-up of fertilizer production in the country has been achieved as a result of favourable policy environment facilitating investments in the public, co-operative and private sectors. It is one of the fastest-growing basic industries, which has taken rapid strides in recent years.

At present, India ranks second in the production of nitrogenous fertilizers and third in phosphatic fertilizers. India is also the second largest consumer of urea after China.

On the basis of the investment and manufactured produce, fertilizer is the second important industry in the country after the iron and steel industry.

52. Through a few (gas-based) industries have already been established, good reserves of natural gas in India remain unutilized. This vast resource of natural gas can be used in the production of: [I.A.S (Pre) 1993]

Correct Answer: (a) Fertilizer
Solution:Huge resources of natural gas can be utilized in the production of fertilizers. Natural gas is a major feedstock for the production of ammonia (through the Haber process), which is mainly used in fertilizer production.                              The Haber-Bosch process uses natural gas to produce hydrogen, which is then combined with nitrogen from the air to create ammonia, a key component of many fertilizers. This process is responsible for a large portion of the world's ammonia production and is essential for modern agriculture.

53. The Oil and Natural Gas Commission (ONGC) was set up in: [U.P.P.C.S. (Mains) 2014]

Correct Answer: (a) 1956
Solution:The Oil and Natural Gas Commission (ONGC) was set up in 14 August 1956, to plan, promote, organize and implement programmes for development of Petroleum Resources and the production and sale of petroleum and petroleum products. But in October 1959, the commission was converted into a statutory body by an Act of Parliament. In 1994, Oil and Natural Gas Commission was converted into Oil and Natural Gas Corporation.

54. OIL is an enterprise involved in: [U.P.U.D.A./L.D.A. (Pre) 2001]

Correct Answer: (c) Oil exploration
Solution:Oil India Limited (OIL) is a premier Indian National Oil Company engaged in the business of exploration, development and production of crude oil and natural gas, transportation of crude oil and production of LPG                     Some of the major initiatives taken by the Government of India to promote the oil and gas sector are:
  • In 2022, the Government announced a reduction in excise duty of Rs. 8 (US$ 0.10) per litre of petrol and Rs. 6 (US$ 0.077) per litre of diesel.
  • In 2022, the government approved changes in the Biofuel Policy to bring forward the target for 20% ethanol blending with petroleum to 2025-26 from 2030.
  • In the Union Budget 2022-23, the customs duty on certain critical chemicals such as methanol, acetic acid, and heavy feedstocks for petroleum refining was reduced.
  • In 2022, it was intimated that India will more than double its exploration area of oil and gas to 0.5 million sq. km. by 2025 and to 1 million sq. km. by 2030 to increase domestic output.

55. 105. With reference to the Public Sector Undertakings in India, consider the following statements: [I.A.S (Pre) 2002]

1. Minerals and Metals Trading Corporation of India Limited is the largest non-oil importer of the country.

2. Project and Equipment Corporation of India Limited is under the Ministry of Indusry.

3. One of the objectives of Export Credit Guarantee Corporation of India Limited is to enforce quality control and compulsory pre-shipment inspection of various exportable commodities.

Which of these statements is/are correct?

Correct Answer: (b) 1 and 2
Solution:MMTC Ltd. is the largest non-oil importer in India. It's diverse trade activities encompass third country trade, joint ventures, link deals-all modern day tools of international trading.

The Project and Equipment Corporation of India Limited (Now PEC Limited) was incorporated as a subsidiary of State Trading Corporation of India Limited on April, 1971. It comes under the Ministry of Commerce & Industry.

ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd.) provides export credit insurance support to Indian exporters. It is not related to the works such as quality control and compulsory pre-shipment inspection..

Hence, statement 3 is wrong, while statements 1 and 2 are correct.

56. Consider the following statements: [I.A.S (Pre) 2009]

1. MMTC Limited is India's largest international trading organization.

2. Neelanchal Ispat Nigam Limited has been set-up by MMTC jointly with the Government of Odisha. Which of the statement given above is/are correct?

 

Correct Answer: (c) Both 1 and 2
Solution:Neelachal Ispat Nigam Limited (NINL) was incorporated in 1982 to set-up 1.1 million tonne Integrated Iron and Steel Plant in Kalinga Nagar Industrial Complex, district Jajpur, Odisha to undertake the manufacture and sale of steel products. NINL is promoted by MMTC Ltd., Industrial Promotion and Investment Corporation of Odisha Ltd. (IPICOL) and other government agencies. NINL has become India's largest exporter of saleable pig iron since 2004-05. MMTC Ltd. (Minerals and Metals Trading Corporation of India), is one of the two highest earners of foreign exchange for India (after petroleum refining companies) and India's largest public sector trading body. It is the largest international trading company of India and the first public sector enterprise to be accorded the status of Five Star Export House by Government of India for long standing contribution to exports.

57. Which among the following is the largest trading Government Company of India? [U.P.P.C.S. (Mains) 2008]

Correct Answer: (b) Minerals and Metals Trading Corporation
Solution:Neelachal Ispat Nigam Limited (NINL) was incorporated in 1982 to set-up 1.1 million tonne Integrated Iron and Steel Plant in Kalinga Nagar Industrial Complex, district Jajpur, Odisha to undertake the manufacture and sale of steel products. NINL is promoted by MMTC Ltd., Industrial Promotion and Investment Corporation of Odisha Ltd. (IPICOL) and other government agencies. NINL has become India's largest exporter of saleable pig iron since 2004-05. MMTC Ltd. (Minerals and Metals Trading Corporation of India), is one of the two highest earners of foreign exchange for India (after petroleum refining companies) and India's largest public sector trading body. It is the largest international trading company of India and the first public sector enterprise to be accorded the status of Five Star Export House by Government of India for long standing contribution to exports.

58. With reference to the functions of Public Sector in India, which of the following statement is/are correct? [U.P.P.C.S. (Pre) 2019]

I. To provide public utility resources

II. To build social and economic overhead capital

III. To ensure balanced regional and sectoral growth

IV. To pursue egalitarian goals

Select the correct answer using the codes given below:

Correct Answer: (c) I, II, III and IV are correct
Solution:The functions and objectives of Public Sector in India includes - to provide public utility resources, to build social and economic overhead capital, to ensure balanced regional and sectoral growth and to pursue egalitarian goals (through promoting redistribution of income and wealth). Generating financial resources for development, creating employment opportunities, encouraging the development of small scale and ancillary industries, and accelerating export promotion and import substitution are some other main objectives and functions of Public Sector in India.

59. Read the following statements carefully: [Chhatisgarh P.C.S. (Pre) 2008]

1. In the public sector of India, there are basic and heavy industries.

2. All industries of the public sector are profit-oriented.

3. Jobs are secured in the industries of the public sector.

Answer on the basis of following codes:

Correct Answer: (b) 1 and 3 are true
Solution:After the independence of India, there was a need of large amount of investment in infrastructure and heavy and basic industries for economic development. At that time, private sector did not have the capacity to invest such a huge amount. Thus, the government played a leading role to provide the basic framework of heavy industries and infrastructure through public sector. Hence, statement 1 is correct. As far as other two statements are concerned, although there is job security in public sector industries, not all public sector enterprises are profit-oriented. Thus, the most suitable answer would be option (b).

60. Assertion (A): In recent times, the growth in the public sector employment has been very sluggish in India. [U.P.P.C.S. (Pre) 1997]

(R): There has been reassessment of the role of State in economic development.

Code:

Correct Answer: (a) Both A and R are true and R is the correct explanation
Solution:India adopted New Economic Policy (NEP) in 1991, in which there has been reassessment of the role of State in economic development. By deregulation of markets or opening the markets for private and foreign players and increasing the participation of private players in erstwhile reserved sectors, the role of public sector in the economy gradually reduced. Thus, the growth in the public sector employment was very sluggish, which further became negative. It is to be noted that since the economic reforms of 1991, both public sector and private sector firms are downsizing workers with greater pace, there is subcontracting and outsourcing of the work which has also added to informal sector employment. So the biggest failure of economic liberalization (of 1991) has been its inability to provide good jobs in the formal/public sector. Hence, both A and R are true and R is the correct explanation of A.