UPSC Prelims 2002 Q66: Current Affairs – Business & Economy
In the year 2001, the Prime Minister announced a five - year excise - duty holiday for industries
in
- (a) Cyclone - prone coastal Andhra Pradesh
- (b) Border states of the North - east
- (c) Earthquake - ravaged Kutch district
- (d) Recently formed states of Chhattisgarh and Jharkhand
Answer: (c) Earthquake - ravaged Kutch district
Explanation
Five-year excise-duty holiday announced in 2001
| Region | Relief package |
|---|---|
| Earthquake-ravaged Kutch district | Yes — after the January 2001 Bhuj earthquake the Prime Minister announced a five-year excise holiday |
| Cyclone-prone coastal Andhra Pradesh | No such announcement |
| Border states of the North-East | North-East had separate incentive schemes |
| Chhattisgarh and Jharkhand | Newly created in 2000, with no excise holiday then |
After the Gujarat earthquake of 26 January 2001, the Prime Minister announced a five-year excise-duty holiday for industries in the earthquake-hit Kutch district to encourage reconstruction and investment.
Answer: (c) Earthquake-ravaged Kutch district.
Why each option is right or wrong
- (a) Incorrect. No such holiday was announced for coastal Andhra Pradesh.
- (b) Incorrect. The North-East had other incentive schemes.
- (c) CORRECT. The holiday was for the quake-hit Kutch district.
- (d) Incorrect. The new states did not get this specific holiday in 2001.
Key point
2001 Bhuj earthquake: magnitude 7.7, 26 January 2001; tax holidays were used for rehabilitation.
Remember
2001 excise holiday: Kutch earthquake area.
Common mistakes
- Choosing the new states because holidays suit backward regions.
- Linking the holiday with the 1999 Odisha cyclone.
- Missing the year 2001 in the stem, which points to the Bhuj quake.
Exam tip
Year 2001 + disaster = Kutch earthquake.
Sources
- Economic Survey 2001-02
- The Hindu — Gujarat earthquake relief package