Industry: UPSC Previous Year Questions (Indian Economy)

Explanation

Statement 1 is incorrect: The National Rail Plan aims to create a ‘future ready’ railway system by 2030, not 2028. The objective of the Plan is to create capacity ahead of demand, which in turn would also cater to future growth in demand right up to 2050 and also increase the modal share of Railways to 45% in freight traffic and to continue to sustain it.

Statement 2 is incorrect: ‘Kavach’ is an indigenously developed Automatic Train Protection (ATP) system by Indian Railways, not in collaboration with Germany. The name "Kavach," meaning "shield" in Hindi, reflects its purpose of delivering robust protection and upholding top safety standards in railway operations. With its certification at the highly regarded Safety Integrity Level 4 (SIL-4), Kavach demonstrates outstanding reliability.

Statement 3 is correct: Radio Frequency Identification (RFID) tags are placed throughout the entire track length to enable the Kavach system to track train positions and detect any potential safety issues along the route.

Explanation

Statement 1 is incorrect: Under Section 15 of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), State Governments do have the power to make rules for regulating the grant of mineral concessions in respect of minor minerals within their territories. This includes framing rules for mining leases, quarry leases, and other concessions.

Statement 2 is correct: The Central Government has the authority to declare a mineral as a ‘minor mineral’ by notification in the Official Gazette as per Section 3(e) of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).

Explanation

Statement 1 is incorrect: The United States is the largest producer of ethanol in the world, accounting for about 52% of global production, while Brazil produces about 28%. For example, in 2024, the U.S. produced 16,219 million gallons, and Brazil produced 8,780 million gallons. Brazil was the top producer until 2005, but since then, the U.S. has consistently outproduced Brazil.

Statement 2 is correct: In the U.S., the principal feedstock for ethanol production is made corn. In Brazil, sugarcane is the main feedstock for ethanol production.

Explanation

Pair 1 is incorrect: The National Automotive Board does not function under the Ministry of Commerce and Industry. It is under the Ministry of Heavy Industries, which oversees policies related to the automotive sector, including electric mobility and auto testing infrastructure.

Pair 2 is incorrect: The Coir Board is not under the Ministry of Heavy Industries. It functions under the Ministry of Micro, Small and Medium Enterprises (MSME) and promotes the coir industry, especially in coastal regions of India.

Pair 3 is incorrect: The National Centre for Trade Information (NCTI) is not under the Ministry of Micro, Small and Medium Enterprises. It is a joint initiative of the Ministry of Commerce and Industry and the India Trade Promotion Organisation (ITPO) for facilitating trade information services.

Explanation

The Petroleum and Natural Gas Regulatory Board (PNGRB) was established by the PNGRB Act, 2006, with a very specific mandate. Its core purpose is to regulate the downstream and midstream segments of the petroleum and natural gas sector in India. This is done to promote competition, protect consumer interests, and ensure the orderly growth of the market.

1. Production of crude oil:

Why it’s NOT regulated by PNGRB: This falls under the upstream segment of the oil and gas industry. "Upstream" refers to the exploration for and production of crude oil and natural gas. This segment involves geological surveys, drilling, and extracting the hydrocarbons from the ground. The regulation of these activities, including licensing, production sharing contracts, and resource management, is primarily handled by the Directorate General of Hydrocarbons (DGH) and the Ministry of Petroleum and Natural Gas directly. The PNGRB was specifically created to handle the post-production aspects.

2. Refining, storage, and distribution of petroleum:

Why it IS regulated by PNGRB: These are crucial downstream and midstream activities. Refining: While the actual process of refining crude oil into various products (like petrol, diesel, kerosene) might have its own technical standards, the PNGRB’s role often comes into play concerning the transportation of crude to refineries and the movement of refined products from refineries. It ensures fair access to transportation infrastructure like pipelines. • Storage: The PNGRB regulates the establishment and operation of storage facilities for petroleum and its products. This includes laying down technical and safety standards, ensuring that storage infrastructure is adequate and managed safely. • Distribution: This is a major area of PNGRB’s focus. It regulates the setting up, operation, and expansion of pipelines for the transportation of petroleum and petroleum products across the country. It also plays a key role in regulating city gas distribution (CGD) networks that supply piped natural gas (PNG) to homes and compressed natural gas (CNG) for vehicles. The aim is to ensure non-discriminatory access to such infrastructure.

3. Marketing and sale of petroleum products:

Why it IS regulated by PNGRB: This is another significant downstream activity. The PNGRB is tasked with:

Regulating the marketing and sale of notified petroleum products and natural gas. Ensuring fair play and competition in the market. Protecting the interests of consumers by monitoring pricing and preventing anti-competitive practices. Setting standards for service obligations for marketing entities.

4. Production of natural gas:

Why it’s NOT regulated by PNGRB: Similar to crude oil production, natural gas production is an upstream activity involving exploration and extraction. As per the PNGRB Act, these activities fall outside the Board’s jurisdiction and are regulated by the DGH and the Ministry. The PNGRB’s role begins once the gas has been produced and enters the transportation, processing, and distribution network.