Option 1 claims that the Second Five-Year Plan emphasized on the establishment of heavy industries. This is correct. The Second Five-Year Plan, often called the Nehru-Mahalanobis Plan, laid significant emphasis on the industrialization with a focus on heavy industries and capital goods. It expected that stable base of heavy industries would accelerate overall industrial and economic growth of the country.

Option 2 says that the Third Five-Year Plan introduced the concept of import substitution as a strategy for industrialization. This statement is also correct. The Third Five-Year Plan aimed at making the country self-reliant and self-generating through import substitution—the strategy which aimed to substitute costly imports with domestic goods production and thus save foreign exchange.

Hence, both statements 1 and 2 are correct, making Option 3 the right answer. There is no need for alert as the provided answer is correct.