UPSC Prelims 2004 Q22: Indian Economy – Infrastructure & Industry
Consider the following statements:
1. The Oil Pool Account of Government of India was dismantled with effect from 1 - 4 - 2002.
2. Subsidies on PDS kerosene and domestic LPG are borne by Consolidated Fund of India.
3. An expert committee headed by Dr. R.A. Mashelkar to formulate a national auto fuel policy
recommended that Bharat Stage - II Emission Norms should be applied throughout the country by
1 April, 2004.
Which of these statements given above are correct?
- (a) 1 and 2
- (b) 2 and 3
- (c) 1 and 3
- (d) 1, 2 and 3
Answer: (a) 1 and 2
Explanation
Oil Pool Account, subsidies and the auto fuel policy
| Statement | Verdict |
|---|---|
| 1. Oil Pool Account dismantled from 1 April 2002 | True |
| 2. PDS kerosene and domestic LPG subsidies from the Consolidated Fund | True |
| 3. Mashelkar Committee: Bharat Stage-II nationwide by 1 April 2004 | False: it recommended Bharat Stage-II nationwide by 2005 |
Statements 1 and 2 are correct.
Answer: (a) 1 and 2.
Why each option is right or wrong
- (a) CORRECT. Statements 1 and 2 are correct.
- (b) Incorrect. Statement 3 states the wrong date.
- (c) Incorrect. Statement 3 states the wrong date.
- (d) Incorrect. Statement 3 is not correct.
Key point
Oil Pool Account: administered pricing mechanism, ended 1 April 2002.
Remember
The Oil Pool Account was dismantled on 1 April 2002.
Common mistakes
- Placing the end of the Oil Pool Account in 1997.
- Mixing the Mashelkar dates for BS-II and BS-III.
- Believing subsidies come from oil companies.
Exam tip
Auto Fuel Policy: Mashelkar Committee, 2002.
Sources
- Ministry of Petroleum and Natural Gas, Government of India — Dismantling of the Administered Price Mechanism and the Oil Pool Account (1 April 2002)
- Ministry of Finance, Government of India — Economic Survey 2002–03 (petroleum sector reforms)