UPSC 2022 Prelims Questions with Answers

Explanation

Statement 1 is incorrect: The largest solar park in India is Bhadla Solar Park, located in Rajasthan, not Gujarat. Spread over 14,000 acres, it has a capacity of 2,245 MW and is among the largest in the world.

Statement 2 is correct: Cochin International Airport in Kerala is the world’s first fully solar-powered international airport. It was inaugurated as a completely solar-run airport in 2015 and won the UN Champions of the Earth award in 2018 for its sustainable model.

Statement 3 is incorrect: Goa does not have the largest floating solar photovoltaic (PV) project. The largest floating solar PV project in India is located in Ramagundam, Telangana, with a 100 MW capacity, developed by NTPC.

Explanation

Statement 1 is correct: The Tea Board of India is a statutory body established under the Tea Act, 1953. It is responsible for the promotion, research, regulation, and trade facilitation of the tea industry.

Statement 2 is incorrect: The Tea Board functions under the Ministry of Commerce and Industry, not the Ministry of Agriculture and Farmers Welfare.

Statement 3 is incorrect: The headquarters of the Tea Board of India is in Kolkata, not Bengaluru. Kolkata has been the traditional center of India’s tea trade.

Statement 4 is correct: The Tea Board has overseas offices in Dubai and Moscow, which help facilitate tea exports, conduct quality inspections, and enhance international market reach.

Explanation

The Polar Code, implemented in January 2017 by the International Maritime Organization (IMO), is a mandatory regulatory framework for ships operating in Arctic and Antarctic waters. It covers ship design, crew training, pollution prevention, and navigation safety, ensuring environmental protection and human safety in extreme polar conditions. The Polar Code supplements existing MARPOL (Marine Pollution) and SOLAS (Safety of Life at Sea) conventions.

Explanation

Statement 1 is incorrect: The India Sanitation Coalition (ISC) is an independent platform led by FICCI, aimed at promoting sanitation, but it is not funded directly by the Government of India or WHO.

Statement 2 is correct: The National Institute of Urban Affairs (NIUA) is an autonomous research body under the Ministry of Housing and Urban Affairs (MoHUA). It provides policy recommendations, urban research, and capacity building for cities across India.

Explanation

Statement 1 is correct: The CCO is the primary source of coal statistics in India, collecting data on production, stock, and dispatch.

Statement 2 is correct: It monitors captive coal and lignite blocks, ensuring efficient allocation and compliance.

Statement 3 is correct: The CCO hears objections regarding coal-bearing land acquisition, as per the Coal Bearing Areas (Acquisition and Development) Act, 1957.

Statement 4 is incorrect: The CCO does not oversee direct coal delivery; this function is handled by Coal India Limited (CIL) and private coal producers. Coal is India’s primary energy source, contributing to over 55% of electricity generation. The Coal Controller’s Organization (CCO) plays a pivotal role in coal regulation, monitoring, and policy implementation.

Explanation

The Labour Bureau, part of the Ministry of Labour & Employment, is tasked with compiling and analyzing data on industrial disputes, closures, retrenchments, and layoffs in factories with workers. It releases the Industrial Disputes Statistics Report and other labour market indicators, which are essential for informing labour policy decisions in India. These data play a vital role in shaping policies, particularly in monitoring industrial conflicts, workforce reductions, and factory shutdowns. Other options are incorrect:

The Central Statistics Office (CSO) focuses on macroeconomic data, not industrial disputes. The Department for Promotion of Industry and Internal Trade (DPIIT) handles investment and trade policies, not labour issues. National Technical Information System Manpower does not compile labour statistics.

Explanation

Statement 1 is incorrect: When inflation is higher than the RBI aims to reduce liquidity in the market. Buying government securities injects money into the economy by increasing liquidity, which would worsen inflation. On the contrary the RBI is more likely to sell government securities to absorb excess liquidity.

Statement 2 is correct: When the rupee depreciates rapidly its value falls relative to the U.S. dollar. This means more rupees are required to purchase one dollar, indicating a weakening rupee. To stabilize the rupee and prevent excessive depreciation, the Reserve Bank of India (RBI) can intervene in the foreign exchange market by selling dollars from its reserves. When the RBI sells dollars in the market, it increases the available supply of dollars in the foreign exchange market. Market participants (importers, banks, and investors) exchange rupees to buy these newly available dollars. This increases the demand for rupees. As demand for rupees rises, the pressure on the rupee to depreciate reduces. This can help stabilize or even strengthen the rupee.

Statement 3 is correct: A fall in US or EU interest rates makes Indian assets more attractive, prompting foreign investors to seek higher returns in India. This increases demand for the rupee, causing it to appreciate. A stronger rupee can hurt exports by making Indian goods more expensive globally. To stabilize the currency and protect export competitiveness, the RBI may intervene by buying dollars, increasing forex reserves and preventing excessive rupee appreciation.

Explanation

Credit Rating is assessment of the creditworthiness of a borrower. Individuals are given ‘credit scores’, while corporations and governments receive ‘credit ratings’.

Statement 1 is incorrect: Credit rating agencies in India are regulated by the Securities and Exchange Board of In-dia (SEBI) under SEBI (Credit Rating Agencies) Regulations, 1999, not the Reserve Bank of India (RBI).

Statement 2 is correct: ICRA (Investment Information and Credit Rating Agency of India Ltd.) was set up in 1991 by IFCI, LIC, SBI and select banks as well as financial institutions to rate debt instruments. The ICRA consists of a group of Companies including its subsidiaries. ICRA Limited is a public limited company listed on stock exchanges.

Statement 3 is correct: In India credit rating agencies registered under Securities and Exchange Board of India (SEBI) are CRISIL, ICRA, CARE, SMERA, Fitch India and Brickwork Ratings. Globally, Fitch Ratings, Moody’s Investors Service and Standard & Poor’s (S&P) control approximately 95% of ratings business.

Explanation

Open-source digital platforms enable transparency, scalability, and accessibility in India’s e-governance initiatives. Aarogya Setu (contact tracing for COVID-19) was later open-sourced to enhance security and transparency. CoWIN (COVID-19 vaccination platform) was built using an open-source framework to facilitate large-scale vaccination tracking. DigiLocker (cloud-based document storage) operates on an open-source framework, allowing citizens to access digital documents securely. DIKSHA (Digital Infrastructure for Knowledge Sharing) is an open-source platform for education and teacher training.

Explanation

The Banks Board Bureau (BBB) was formed on the recommendations of ‘P. J. Nayak Committee to Review Governance of Boards of Banks.

Statement 1 is incorrect: The Banks Board Bureau (BBB) was headed by a prominent professional or former senior government official, rather than the Governor of the Re-serve Bank of India (RBI). Notably, its first Chairman was Shri Vinod Rai, who previously served as the Comptroller and Auditor General of India.

Statement 2 is correct: Its primary role was to recommend appointments for senior positions in Public Sector Banks (PSBs), Financial Institutions (FIs), and Public Sector Insurance Companies. In 2022, the BBB was replaced by the Financial Services Institutions Bureau (FSIB), which continues to carry out similar functions.

Statement 3 is correct: The BBB advises PSBs on various strategic matters such as: Business strategies, Capital raising plans, Governance reforms, etc. It also assists banks in addressing issues related to non-performing assets (NPAs) and improving operational efficiency.