Industrial Sector - Public Sector Enterprises MCQs with Explanations
Public Sector Enterprises (PSEs) are government-owned companies established to promote industrial growth, infrastructure development and public welfare. This topic covers the objectives, classification, importance and challenges of PSEs in the Indian economy and is frequently asked in competitive examinations.
With reference to the Public Sector Undertakings in India, consider the following statements :
Minerals and Metals Trading Corporation of India Limited is the largest non-oil importer of the country.
Project and Equipment Corporation of India Limited is under the Ministry of Industry.
One of the objectives of Export Credit Guarantee Corporation of India Limited is to enforce quality control and compulsory pre-shipment inspection of various exportable commodities.
Which of these statements is/are correct?
Correct Answer:
(B) 1 and 2
MMTC is the largest non–oil importer in India. It’s diverse trade activities encompass third country trade, joint ventures, link deals – all modern day tools of international trading. The Project and Equipment Corporation of India Limited (Now PEC Limited) was incorporated as a subsidiary of State Trading Corporation of India Limited on April 1971. It comes under the Ministry of Commerce & Industry. ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd.) provides export credit insurance support to Indian exporters. It is not related to the works such as quality control and compulsory pre-shipment inspection. Hence, statement 3 is wrong, while statements 1 and 2 are correct.
Ques: 2
Consider the following statements:
MMTC Limited is India’s largest international trading organization.
Neelanchal Ispat Nigam Limited has been set-up by MMTC jointly with the Government of Odisha.
Which of the statement given above is/are correct?
Correct Answer:
(C) Both 1 and 2
Neelachal Ispat Nigam Limited (NINL) was incorporated in 1982 to set-up 1.1 million tonne Integrated Iron and Steel Plant in Kalinga Nagar Industrial Complex, district Jajpur, Odisha to undertake the manufacture and sale of steel products. NINL is promoted by MMTC Ltd., Industrial Promotion and Investment Corporation of Odisha Ltd. (IPICOL) and other government agencies. NINL has become India's largest exporter of saleable pig iron since 2004-05. MMTC Ltd. (Metals and Minerals Trading Corporation of India), is one of the two highest earners of foreign exchange for India (after petroleum refining companies) and India’s largest public sector trading body. It is the largest international trading company of India and the first public sector enterprise to be accorded the status of Five Star Export House by Government of India for long standing contribution to exports.
Ques: 3
With reference to the functions of Public Sector in India, which of the following statements is/are correct?
To provide public utility resources
To build social and economic overhead capital
To ensure balanced regional and sectoral growth
To pursue egalitarian goals
Select the correct answer using the codes given below :
Correct Answer:
(C) 1, 2, 3 and 4 are correct
The functions and objectives of Public Sector in India includes – to provide public utility resources, to build social and economic overhead capital, to ensure balanced regional and sectoral growth and to pursue egalitarian goals (through promoting redistribution of income and wealth). Generating financial resources for development, creating employment opportunities, encouraging the development of small scale and ancillary industries, and accelerating export promotion and import substitution are some other main objectives and functions of Public Sector in India.
Ques: 4
Which of the following is NOT a public sector undertaking/enterprise?
Correct Answer:
(D)
T.I.S.C.O.
Formerly known as Tata Iron and Steel Company Limited (TISCO), Tata Steel is among the top steel producing companies in the world with an annual crude steel capacity of 34 million tons per annum. It is a subsidiary of the Tata Group. It was established at Jamshedpur, Jharkhand in 1907. It is not a public sector enterprise. NTPC, SAIL and BHEL are Maharatna CPSEs.
Ques: 5
Which of the following are the public sector undertakings of the Government of India?
Balmer Lawrie and Company Ltd.
Dredging Corporation of India
Educational Consultants of India Ltd.
Codes :
Correct Answer:
(C) 1 and 3 only
At present, option (c) is correct. Details of the above-mentioned enterprises are given below :
Enterprises Details
Balmer Lawrie Company Ltd. – Balmer Lawrie is a Mini Ratna - I and Public Sector Enterprise under the Ministry of Petroleum and Natural Gas, Govt. of India.
Dredging Corporation of India – The Dredging Corporation of India Limited (DCI) was established in the year 1976 to provide dredging services to the Major Ports of the country in India as a Public Sector Enterprise. In November 2017, the Government of India approved the privatization of DCI and in 2018 DCI has been handed over to a consortium of 4 major ports.
Educational Consultants of India Ltd.– EdCIL (India) Limited (earlier known as Educational Consultants India Limited) is a Public Sector Undertaking in India under the administrative control of the Ministry of Education. It was incorporated in 1981. EdCIL (India) Limited is a Mini Ratna Category-1 CPSE.
Ques: 6
HAL is related to manufacturing of :
Correct Answer:
(B) Aircrafts
Hindustan Aeronautics Limited (HAL) is an Indian state-owned aerospace and defence company headquartered in Bangalore (Bengaluru). HAL was originally established as Hindustan Aircraft Limited in Bangalore on 23 December 1940, by Walchand Hirachand in association with the then Kingdom of Mysore. In 1947 the management of the company was passed over to the Government of India. It was restructured as Hindustan Aeronautics Limited on 1 October, 1964. It is mainly related to manufacturing of Aircrafts.
Ques: 7
Which of the following is related with the field of electricity generation?
Correct Answer:
(D)
N.H.P.C.
Among the given options, NHPC is related with the field of electricity generation. NHPC Ltd. (erstwhile National Hydroelectric Corporation) is a Mini Ratna Category-I CPSE. It has become the largest organization for hydropower development in India, with capabilities to undertake all the activities from conceptualization to commissioning in relation to setting up of hydro products. NHPC Ltd. has also diversified in the field of Solar & Wind power.