Statement 2 is correct. The Department of Personnel was constituted in 1970 within the Cabinet Secretariat, based on the recommendations of the Administrative Reforms Commission (1966-1970). This department was subsequently placed under the direct charge of the Prime Minister. It later evolved into the Ministry of Personnel, Public Grievances and Pensions.
Statement 1 is incorrect. The recommendation to designate a minister and a secretary solely for administrative reforms was made by the First Administrative Reforms Commission (1966-1970), not by the N. Gopalaswamy Iyengar Committee. The N. Gopalaswamy Iyengar Committee (1949) primarily focused on the reorganization of the central government machinery. Therefore, options (a), (c), and (d) are incorrect as they either exclusively select statement 1, include statement 1, or reject statement 2.