UPSC Prelims 2007 Q68: Indian Economy – Infrastructure & Industry
With reference to the steel industry in India in recent times, consider the following
statements:
1. Vizag Steel Plant (RINL) has been declared a Mini - Ratna.
2. Merger of IISCO with SAIL has been completed.
Which of the 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
Steel PSUs in India (2006-07)
| Statement | Fact | Verdict |
|---|---|---|
| 1. RINL (Vizag Steel) declared Mini-Ratna | RINL got Miniratna (Category I) status in 2006; later Navratna in 2010 | TRUE |
| 2. IISCO merged with SAIL | Indian Iron & Steel Co. (Burnpur, WB) merged into SAIL in February 2006 | TRUE |
Rashtriya Ispat Nigam Ltd (RINL) runs the Visakhapatnam Steel Plant — India's first shore-based integrated steel plant.
After the merger, IISCO became IISCO Steel Plant (ISP), Burnpur under SAIL.
Answer: (c) Both 1 and 2.
Why each option is right or wrong
- (a) Incorrect. Statement 2 is also true — the IISCO-SAIL merger was completed in 2006.
- (b) Incorrect. Statement 1 is also true — RINL got Miniratna status in 2006.
- (c) CORRECT. Both are true: RINL = Miniratna (2006); IISCO merged into SAIL (2006).
- (d) Incorrect. Both statements are correct.
Key point
2006: RINL (Vizag) became Miniratna; IISCO (Burnpur) merged into SAIL. RINL became Navratna in 2010.
Remember
RINL got Miniratna in 2006; IISCO merged into SAIL in 2006.
Common mistakes
- Thinking RINL was always a Navratna — it was Miniratna first (2006), Navratna in 2010.
- Confusing IISCO (Burnpur) with TISCO (Jamshedpur, private Tata Steel).
- Not knowing Vizag is a coastal (shore-based) plant, unlike most steel plants near ore fields.
Exam tip
PSU status ladder: Miniratna → Navratna → Maharatna. SAIL is a Maharatna; RINL is a Navratna.
Sources
- Ministry of Steel — Annual Report 2006-07
- Department of Public Enterprises — CPSE status list
- NCERT Class X — Contemporary India II, Ch 6 (Manufacturing Industries)