UPSC Prelims 2004 Q40: Indian Economy – Infrastructure & Industry
Consider the following statements:
1. National Thermal Power Corporation has diversified into hydropower sector.
2. Power Grid Corporation of India has diversified into telecom sector.
Which of these statements given above is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer: (c) Both 1 and 2
Explanation
Diversification of NTPC and Power Grid
| Statement | Verdict |
|---|---|
| 1. NTPC has diversified into hydropower | True — hydro projects in Himachal and Uttarakhand |
| 2. Power Grid has diversified into telecom | True — fibre optic network leasing |
Both statements are correct: NTPC has diversified into the hydropower sector, and Power Grid Corporation of India has diversified into telecom by leasing its fibre-optic network.
Answer: (c) Both 1 and 2.
Why each option is right or wrong
- (a) Incorrect. Statement 2 is also correct.
- (b) Incorrect. Statement 1 is also correct.
- (c) CORRECT. Both statements are correct.
- (d) Incorrect. Both statements are correct.
Key point
NTPC: thermal, then hydro (Koldam), gas; PGCIL: transmission, telecom (PowerTel).
Remember
NTPC moved into hydro and Power Grid moved into telecom.
Common mistakes
- Thinking NTPC is limited to thermal power.
- Forgetting Power Grid's telecom arm.
- Mixing NTPC with the hydro-only NHPC.
Exam tip
PSU diversification is a frequent current-affairs theme.
Sources
- Ministry of Power — annual report 2003-04
- National Thermal Power Corporation Limited — Annual Report 2003–04
- Power Grid Corporation of India Limited — Annual Report 2003–04