Statement I: The Second Five Year Plan stressed on heavy industries. Statement II: A bulk of industries like electricity, railways, steel could be developed by the private sector.

The correct option is: Statement I is correct, but Statement II is incorrect.

Analysis of Statement I:
The Second Five-Year Plan (1956–1961) in India, based on the Mahalanobis model, laid a strong emphasis on rapid industrialization with a particular focus on the development of heavy and basic industries (such as steel, chemicals, machine building, and heavy engineering). The main goal was to build a robust industrial foundation for long-term economic self-reliance. Therefore, Statement I is correct.

Analysis of Statement II:
Heavy and infrastructural industries like electricity generation, railways, and steel production require massive capital investments and have long gestation periods. In post-independence India, the private sector lacked the necessary financial resources, technology, and capacity to develop these sectors on a large scale. Consequently, the Industrial Policy Resolution of 1956 reserved these strategic key sectors primarily for the public (state-owned) sector rather than the private sector. Therefore, Statement II is incorrect.