UPSC Prelims 2002 Q109: Indian Economy – Infrastructure & Industry
Consider the following statements:
1. NTPC is the largest power utility in India.
2. ONGC accounts for half of the LPG production in India.
3. Indian Oil Corporation operates all the oil refineries in India.
4. The Indian Ordinance Factory is the largest departmentally run industrial undertaking in the
country.
Which of these statements is/are correct?
- (a) 1 only
- (b) 2 and 3
- (c) 2, 3 and 4
- (d) 1 and 4
Answer: (d) 1 and 4
Explanation
Public sector enterprises: NTPC, ONGC, IOC and the Ordnance Factories
| Statement | Verdict |
|---|---|
| 1. NTPC is the largest power utility in India | True at that time |
| 2. ONGC accounts for half of the LPG production | False — most LPG comes from refineries and gas processing plants |
| 3. IOC operates all the oil refineries | False — other companies such as BPCL, HPCL and Reliance run refineries |
| 4. The Indian Ordnance Factory is the largest departmentally run industrial undertaking | True — it is run as a department of the Government |
NTPC was then the biggest power utility, and the Indian Ordnance Factories were the largest industrial undertaking run directly as a department of government (the railways being a transport undertaking). Statements 2 and 3 are false, so the answer is 1 and 4.
Answer: (d) 1 and 4.
Why each option is right or wrong
- (a) Incorrect. Statement 4 is also true.
- (b) Incorrect. Statements 2 and 3 are both false.
- (c) Incorrect. Statements 2 and 3 are false.
- (d) CORRECT. Statements 1 and 4 are true.
Key point
NTPC: largest thermal power generator; Ordnance Factory Board: 39 factories under the Ministry of Defence.
Remember
Ordnance factories are departmentally run, unlike PSU companies.
Common mistakes
- Believing IOC runs all refineries, since it has the most capacity.
- Crediting ONGC with half of LPG output.
- Doubting that the ordnance factories are departmental.
Exam tip
Absolute claims such as 'all the refineries' are almost always false.
Sources
- Ministry of Power — NTPC
- Ministry of Defence — Ordnance Factory Board