The correct answer is option 3 i.e Both 1 and 2. Quality Council of India (QCI) was set up jointly by the Government of India and the Indian Industry represented by the three premier industry associations i.e. Associated Chambers of Commerce and Industry of India (ASSOCHAM), Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI), to establish and operate national accreditation structure and promote quality through National Quality Campaign. (Hence statement 1 is correct) QCI is registered as a non-profit society with its own Memorandum of Association. QCI is governed by a Council comprising of 38 members including the Chairman and Secretary-General. The Council has an equal representation of Government, Industry, and other Stakeholders. The Chairman of QCI is appointed by the Prime Minister on the recommendation of the industry to the government. (Hence statement 2 is correct) The Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, is the nodal ministry for QCI.