XAT 2020 Question 30

Instructions

Read the situation below and answer the 3 associated questions:
A Multinational Company (MNC) sources pristine natural spring water from Bori, a village in Satpura mountains. The unprocessed natural spring water is directly bottled by the MNC. The company brands it as “Natural Spring Water” and sells at 50% premium vis-a-vis other brands that sell processed water.

The local panchayat, under the Panchayati Raj Act, 1992 controls the spring water usage. Hence, the company signed a 30-year contract with the panchayat for exclusive access to the spring water for business purposes. This contract contributes 50% to the panchayat’s revenues besides providing 250 jobs in the panchayat. The spring also meets domestic and agricultural needs of the people of Bori and the surrounding villages.

Question 30

Chanchala owns a small parcel of farming land in Bori. She grows cannabis in some part of her land and earns a significant amount of money from it. Soon after the bottling plant was commissioned, Chanchala, instigated by a landlord with a vested interest, starts accusing the MNC of robbing her of water and impacting her livelihood. She threatens to take the MNC to court.
Which of the following options will BEST solve the MNC’s problem?

Solution

Option A won't necessarily solve the problem as the son can always work at the farm and doesn't really need the job.

Option B could increase the problems for the MNC as it is akin to taking away Chanchala's livelihood.

Options C and E may lead to more instances of people accusing the MNC.

Option D is the best option as the villagers employed by the company can make a good case for it and Chanchala is more likely to listen to them than to the MNC.

Hence, the answer is option D.



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