With reference to power sector in India consider the following statements: 1. Rural electrification has been treated as a Basic Minimum Service under the Prime Ministers Gramodaya Yojana. 2. 100 per cent Foreign Direct Investment in power is allowed witho

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Q: 132 (IAS/2002)
With reference to power sector in India consider the following statements:
1. Rural electrification has been treated as a Basic Minimum Service under the Prime Minister’s Gramodaya Yojana.
2. 100 per cent Foreign Direct Investment in power is allowed without upper limit
3. The Union Ministry of Power has signed a Memoranda of Understanding with 14 states.
Which of these statements is/are correct?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,11,43,24,13,11,6

keywords: 

{'power sector': [0, 0, 2, 0], 'rural electrification': [0, 0, 1, 1], 'union ministry': [1, 0, 9, 11], 'india': [8, 1, 7, 13], 'basic minimum service': [0, 0, 1, 0], 'gramodaya yojana': [0, 0, 1, 0], 'cent foreign direct investment': [0, 0, 2, 0], 'power': [24, 3, 21, 61], 'states': [1, 0, 0, 1]}

Option 1 states that only the first statement is correct, which is false. Rural electrification has indeed been treated as a Basic Minimum Service under the Prime Minister’s Gramodaya Yojana. However, this option disregards the truth of the second statement.

Option 2 considers the first two statements to be correct. Statement 2 is valid as the Government of India does allow 100% FDI in the power sector without an upper limit. However, this option, like the first one, disregards the truth of the third statement.

Option 3, the correct answer, validates statements 2 and 3. The Union Ministry of Power in India has signed Memoranda of Understanding with numerous states, primarily to support their efforts in power sector reforms.

Option 4, by contrast, only admits the correctness of the third statement and incorrectly discounts the validity of the first two.