Directions: In the question given below a statement is followed by three courses of action numbered I, II and III. A course of action is a step or administrative decision to be taken for improvement, follow up or further action in regard to the problem, policy etc. on the basis of the information given in the statement. You have to assume everything in the statement to be true, then decide which of the three given/suggested courses of action logically follows for pursuing and decide the answer.
Statement: The Deputy Mayor of city Z has proposed to install a plant of mineral water and to supply the citizens mineral water bottles at Rs. 6 per litre as against Rs. 10 per litre being sold by local private companies. Courses of action: I. The local private companies of city Z will have to close their operations. II. The Corporation of city Z will have to provide for the losses in this project in its budget. III. The tap water scheme of city Z will have to be stopped.