UPSC Civil Services 2020 Prelims General Studies Paper I

“Under the NBS Policy, the Government announces a fixed rate of subsidy (in Rs. per Kg basis), on each nutrient of subsidized P&K fertilizers, namely Nitrogen (N), Phosphate (P), Potash (K) and Sulphur (S), on annual basis taking into account all relevant factors including international prices, exchange rate, inventory level and prevailing Maximum Retail Prices of P&K fertilizers.

Hence statement 1 is NOT correct.

A typical modern ammonia-producing plant first converts natural gas (i.e., methane) or LPG (liquefied petroleum gases such as propane and butane) or petroleum naphtha into gaseous hydrogen. ... The hydrogen is then combined with nitrogen to produce ammonia via the Haber-Bosch process. Hence Statement 2 is correct.

Sulfur is a major by-product of oil refining and gas processing.

Processing of high-sulfur natural gas is also a large source of sulfur supply.Sulfur can also be mined from underground, naturally-occurring deposits, but this is more costly than sourcing from oil and gas and has largely been discontinued.

Hence statement 3 is correct.

Hence the answer is B.