Consider the following statements with respect to recent developments in infrastructure sector in India:
1. India Infrastructure Finance Company Limited was set up as a banking company for providing long-term loans for financing infrastructure projects.
2. 100 per cent Foreign Direct Investment under automatic route is permitted for all infrastructure projects.
Which of the statements given above is/are correct?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CAPF – 2009
Statement 2 is incorrect. While India allows 100% Foreign Direct Investment (FDI) under the automatic route in many infrastructure sectors (like roads, ports, airports, power generation, telecom services), the automatic route is not permitted for *all* infrastructure projects universally without any conditions or exclusions (e.g., certain railway activities, atomic energy-related infrastructure might have restrictions or require government approval). The term “all” makes the statement false.
Since both statements are incorrect, the correct option is Neither 1 nor 2.