{"id":89131,"date":"2025-06-01T09:56:36","date_gmt":"2025-06-01T09:56:36","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=89131"},"modified":"2025-06-01T09:56:36","modified_gmt":"2025-06-01T09:56:36","slug":"consider-the-following-statements-with-respect-to-recent-developments","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-with-respect-to-recent-developments\/","title":{"rendered":"Consider the following statements with respect to recent developments"},"content":{"rendered":"

Consider the following statements with respect to recent developments in infrastructure sector in India:
\n1. India Infrastructure Finance Company Limited was set up as a banking company for providing long-term loans for financing infrastructure projects.
\n2. 100 per cent Foreign Direct Investment under automatic route is permitted for all infrastructure projects.
\nWhich of the statements given above is\/are correct?<\/p>\n

[amp_mcq option1=”1 only” option2=”2 only” option3=”Both 1 and 2″ option4=”Neither 1 nor 2″ correct=”option4″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CAPF – 2009<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nStatement 1 is incorrect. India Infrastructure Finance Company Limited (IIFCL) was established in 2006 as a wholly-owned government company (under the Ministry of Finance). It is registered with the RBI as a Non-Banking Financial Company-Infrastructure Finance Company (NBFC-IFC), not a banking company. Its purpose is to provide long-term financial assistance to viable infrastructure projects.
\nStatement 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.
\nSince both statements are incorrect, the correct option is Neither 1 nor 2.
\n<\/section>\n
\nUnderstanding the nature of financial institutions like IIFCL (NBFC vs Banking Co.) and the nuances of FDI policy (automatic vs. government route, sector-specific conditions) is crucial when analyzing infrastructure development in India.
\n<\/section>\n
\nIIFCL provides financial support through various products like long-term debt, subordinate debt, guarantees, and credit enhancement. India’s FDI policy is dynamic and sector-specific, aiming to attract foreign capital while safeguarding national interests.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

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 … <\/p>\n

Detailed SolutionConsider the following statements with respect to recent developments<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1085],"tags":[1462,1120,1163],"class_list":["post-89131","post","type-post","status-publish","format-standard","hentry","category-upsc-capf","tag-1462","tag-economic-development","tag-industrial-sector","no-featured-image-padding"],"yoast_head":"\nConsider the following statements with respect to recent developments<\/title>\n<meta name=\"description\" content=\"Statement 1 is incorrect. India Infrastructure Finance Company Limited (IIFCL) was established in 2006 as a wholly-owned government company (under the Ministry of Finance). It is registered with the RBI as a Non-Banking Financial Company-Infrastructure Finance Company (NBFC-IFC), not a banking company. Its purpose is to provide long-term financial assistance to viable infrastructure projects. 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. Understanding the nature of financial institutions like IIFCL (NBFC vs Banking Co.) and the nuances of FDI policy (automatic vs. government route, sector-specific conditions) is crucial when analyzing infrastructure development in India.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-with-respect-to-recent-developments\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Consider the following statements with respect to recent developments\" \/>\n<meta property=\"og:description\" content=\"Statement 1 is incorrect. India Infrastructure Finance Company Limited (IIFCL) was established in 2006 as a wholly-owned government company (under the Ministry of Finance). It is registered with the RBI as a Non-Banking Financial Company-Infrastructure Finance Company (NBFC-IFC), not a banking company. Its purpose is to provide long-term financial assistance to viable infrastructure projects. 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. 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Understanding the nature of financial institutions like IIFCL (NBFC vs Banking Co.) and the nuances of FDI policy (automatic vs. government route, sector-specific conditions) is crucial when analyzing infrastructure development in India.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-with-respect-to-recent-developments\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T09:56:36+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-with-respect-to-recent-developments\/","url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-statements-with-respect-to-recent-developments\/","name":"Consider the following statements with respect to recent developments","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T09:56:36+00:00","dateModified":"2025-06-01T09:56:36+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Statement 1 is incorrect. 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