Static Quiz 07 August 2023 (Indian Economy)

Solution: b)
Justification:

Solution: c)
Justification: Statement 1: In this way, power grid manages the peak deficit problems.
Statement 2: A National Power Grid was completed by linking all the five Regions-North, South, East, West and North East. It is the largest single system in the world both in terms of grid size and a system capacity of around 200000 MW. This ensured complete integration of India into seamless network for delivering electricity.
Statement 3: POWERGRID is an Indian state-owned electric utilities company headquartered in Gurugram, India. POWERGRID transmits about 50% of the total power generated in India on its transmission network.

Solution: d)
Justification: Statement 1: In India, the minerals are classified as minor minerals and major minerals. Central Government by notification in the Official Gazette declares minerals to be a minor or major mineral. The majorminor classification has nothing to do with the quantum /availability of these minerals, though it is correlated with the relative value of these minerals. Further, this classification is based more on their end use, rather than level of production, level of mechanization, export and import etc. (e.g. Sand can be a major mineral or a minor mineral depending on where it is used; same is the case for limestone.) Major minerals are those specified in the first schedule appended in the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act 1957) and the common major minerals are Lignite, Coal, Uranium, iron ore, gold etc. It may be noted that there is no official definition for “major minerals” in the MMDR Act. Hence, whatever is not declared as a “minor mineral” may be treated as the major mineral. Major minerals are exploited by the Centre, and minor by the State.

Solution: c)
Justification: Statement 1 and 2: LLP is a hybrid of companies & partnerships providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership. The Act was enacted by the Parliament of India to introduce and legally sanction the concept of LLP in India. Unlike the general partnerships in India, LLP is a body corporate and legal entity separate from its partners, have perpetual succession and any change in the partners of a LLP shall not affect the existence, rights or liabilities of the LLP.
Statement 2: LLP registered in India will be a resident even if only a part of control and management is in India. Profits distributed by LLP exempt in the hands of the partners.

Solution: d)
Justification: At present, India imports basic chipset for mobile handsets but there has been a spurt in the production of other mobile components. CBEC has recently imposed a 10% duty on imports of key smartphone components such as populated printed circuit boards (PCBs), camera modules and connectors. At present there is zero import duty imposed on the three components. This decision will push local assembly or manufacturing of these components as companies who make here will get a price advantage over those who don’t. This decision follows the government’s announcement to impose 20% basic customs duty (BCD) on fully built mobile phones, which came into effect from February 1, 2018 as part of its phased manufacturing program (PMP). Since 2014, import duties have acted as catalyst to grow investment into mobile phone manufacturing in India. Over the next 10-12 years, PMP aims to make India a manufacturing hub of mobile components. PMP was launched for promoting the growth of domestic manufacturing of Cellular mobile handsets only. It has been proposed to extend this program to other sectors as well. This programme is under Ministry of Electronics and Information Technology (MieTY). Its overall aim is to impose duties (differential duty regime) and give tax reliefs and incentives on select products involved in domestic manufacturing of cellular handsets. It is called phased manufacturing programme because it will give fiscal benefits to domestic manufacturing of various components of cellular handsets in different fiscals.