UPSC Prelims 2002 Q85: Indian Economy – Infrastructure & Industry
With reference to the public Sector Undertaking in India, consider the following statements:
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 Industry.
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?
- (a) 1 only
- (b) 1 and 2
- (c) 2 and 3
- (d) 3 only
Answer: (a) 1 only
Explanation
Public sector undertakings: MMTC, PEC and ECGC
| Statement | Verdict |
|---|---|
| 1. MMTC is the largest non-oil importer of the country | True at that time |
| 2. PEC is under the Ministry of Industry | False — PEC is under the Ministry of Commerce |
| 3. ECGC enforces quality control and pre-shipment inspection | False — that is the work of the Export Inspection Council; ECGC insures export credit |
| Combination | Only statement 1 is correct |
The Minerals and Metals Trading Corporation (MMTC) was India's largest non-oil importer. The Projects and Equipment Corporation (PEC) belongs to the Ministry of Commerce. The Export Credit Guarantee Corporation (ECGC) gives export credit insurance and does not inspect goods.
Answer: (a) 1 only.
Why each option is right or wrong
- (a) CORRECT. Only statement 1 is true.
- (b) Incorrect. Statement 2 is false since PEC is under Commerce.
- (c) Incorrect. Statements 2 and 3 are both false.
- (d) Incorrect. Statement 3 is false since ECGC does not inspect goods.
Key point
ECGC: export credit insurance; Export Inspection Council: quality control; MMTC and PEC: Commerce Ministry trading PSUs.
Remember
ECGC insures export credit; it does not inspect goods.
Common mistakes
- Placing PEC under the Ministry of Industry.
- Giving ECGC the inspection role of the Export Inspection Council.
- Doubting that MMTC was the biggest non-oil importer.
Exam tip
Two of three statements mix up ministries or functions, leaving statement 1.
Sources
- Ministry of Commerce — PSU list
- Economic Survey 2001-02