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.

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Submitted by examrobotsa on

Q: 13 (CAPF/2009)
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 ?

question_subject: 

Economics

question_exam: 

CAPF

stats: 

0,11,129,73,11,44,12

keywords: 

{'india infrastructure finance company limited': [0, 0, 1, 0], 'infrastructure sector': [0, 0, 0, 1], 'infrastructure projects': [0, 0, 1, 2], 'cent foreign direct investment': [0, 0, 2, 0], 'banking company': [0, 0, 1, 0], 'india': [8, 1, 7, 13], 'term loans': [0, 0, 1, 0], 'automatic route': [0, 0, 1, 1]}

The correct answer is option 2: statement 2 only.

Statement 1 is incorrect because India Infrastructure Finance Company Limited (IIFCL) was not set up as a banking company. It was established as a non-banking finance company by the Indian government in 2006 to provide long-term loans for financing infrastructure projects.

Statement 2 is correct. 100% Foreign Direct Investment (FDI) under the automatic route is indeed permitted for all infrastructure projects in India. The automatic route means that no prior approval from the government is required for foreign investors to invest in these projects.

Therefore, only statement 2 is correct. Statement 1 is incorrect.