With reference to Power Sector in India, consider the following statements: 1. Rural electrification has been treated as a Basic Minimum Service under the Prime Minister’s Gramodaya Yojana 2. 100 percent Foreign Direct Investment in power is allowed without upper limit 3. The Union Ministry of Power has signed a Memoranda of Understanding with 14 States Which of these statements is/are correct?

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YESPYQ · Accepted Answer

Correct answer: 1 and 2. Statement 1 is correct: Rural electrification was identified as a Basic Minimum Service under the Prime Min- ister’s Gramodaya Yojana, a flagship program aimed at im- proving rural infrastructure, including power supply, edu- cation, and health services. As per government records during this period, rural electrification was prioritized to reduce region- al imbalances. Statement 2 is correct: Since the economic reforms of 1991, India allowed 100% Foreign Direct Investment (FDI) in the power sector without any upper limit. This was done to at- tract foreign capital and technology to boost power generation and infrastructure. Statement 3 is incorrect: By 2001, the Union Ministry of Power had signed Memoranda of Understanding (MoUs) with more than 14 States. The exact number was higher, as the government was actively collaborating with multiple states to improve power generation and distribution. 96

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