UPSC Prelims 2009 Q5: Indian Economy – Infrastructure & Industry
Consider the following statements:
1. MMTC Limited is India's largest international trading organisation.
2. Neelachal Ispat Nigam Limited has been set up by MMTC jointly with the Government of
Orissa.
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
Checking two claims about MMTC Limited
MMTC is a major Indian public-sector trading enterprise with specific joint-venture activities.
| Statement | Verdict | Reason |
|---|---|---|
| 1. MMTC Limited is India's largest international trading organisation | Correct | MMTC has historically been recognized as India's largest international trading company, handling exports/imports of minerals, metals, and agri-commodities |
| 2. Neelachal Ispat Nigam Limited set up by MMTC jointly with the Government of Orissa | Correct | NINL was indeed established as a joint venture involving MMTC alongside the Odisha (Orissa) state government and other partners |
MMTC facts:
| Point | Detail |
|---|---|
| Status | India's largest international trading organisation |
| Joint venture | Neelachal Ispat Nigam Ltd., with Odisha government involvement |
Answer: (c) Both 1 and 2.
Why each option is right or wrong
- (a) Incorrect. Statement 2 (NINL joint venture) is also correct, so '1 only' is incomplete.
- (b) Incorrect. Statement 1 (largest trading organisation) is also correct, so '2 only' is incomplete.
- (c) CORRECT. Both MMTC's largest-trading-organisation status and its NINL joint venture with Odisha are accurate.
- (d) Incorrect. Since both statements are accurate, 'neither' is wrong.
Key point
MMTC Limited is India's largest international trading organisation AND co-established Neelachal Ispat Nigam Limited jointly with the Odisha (Orissa) government — both statements are accurate.
Remember
MMTC Limited: India's largest international trading organisation; co-founded Neelachal Ispat Nigam Ltd. with the Odisha government.
Common mistakes
- Underestimating MMTC's scale as India's largest trading enterprise.
- Not knowing the specific NINL joint venture involving MMTC and the Odisha government.
- Assuming public-sector trading companies don't typically form industrial joint ventures.
Exam tip
MMTC = India's largest trading PSU, with industrial joint ventures like NINL (with Odisha government).
Sources
- MMTC Limited — Annual Report 2008–09
- Neelachal Ispat Nigam Limited — Annual Report 2008–09