Statement 2 is correct. The Administrative Reforms Commission (ARC) headed by Morarji Desai submitted its report in 1966. One of its key recommendations was the creation of a Department of Personnel. This Department was constituted in 1970 and placed under the direct charge of the Prime Minister to underscore the importance of personnel administration. Statement 1 is incorrect. While the N. Gopalaswamy Iyengar Committee (1949) made significant recommendations for the reorganisation of the central government machinery and administrative improvements, the specific suggestion of designating a minister and a secretary solely for administrative reform and promoting it is not primarily associated with this committee. Various mechanisms for overseeing administrative reforms have been suggested and implemented over time, often involving departments under the Prime Minister or Cabinet Secretariat.