Question

Difficulty: HardExplicit and Fact-Based Information Extraction

Read the following passage carefully:

"In January 2026, the Ministry of Heavy Industries notified the operational guidelines for the Electric Public Transport Augmentation Scheme (EPTAS). Under the framework, municipal transit corporations operating in metropolitan areas with a population exceeding two million (as per the 2011 Census) are eligible for a 40% direct capital purchase subsidy on electric buses, provided that a minimum of 65% of total vehicle components by value are sourced domestically. For tier-2 urban centers with populations between 500,000 and two million, the capital subsidy is fixed at 25%, with the domestic component requirement relaxed to 50%. The scheme explicitly debars independent private fleet operators from claiming direct purchase subsidies. However, private operators running electric buses under a Public-Private Partnership (PPP) model via gross cost contracts with State Transport Undertakings (STUs) can claim an operational subsidy of ���8 per kilometer, provided the contracted fleet is fully deployed prior to September 30, 2027."

Based strictly on the explicit facts provided in the passage, which of the following statements is correct regarding subsidy eligibility under EPTAS?

  1. A
    Municipal transit corporations in cities with a population of 1.5 million can claim a 40% direct capital purchase subsidy if 65% of vehicle components are sourced domestically.
  2. Private fleet operators executing gross cost contracts under a PPP model with STUs qualify for an operational subsidy of ₹8 per kilometer if the fleet is deployed before September 30, 2027.Answer
  3. C
    Independent private fleet operators can claim a 25% direct capital purchase subsidy provided they operate exclusively within tier-2 urban centers.
  4. D
    Municipal transit corporations in metropolitan areas receive an operational subsidy of ₹8 per kilometer in addition to the 40% direct capital purchase subsidy.

Answer

Private fleet operators executing gross cost contracts under a PPP model with State Transport Undertakings qualify for an operational subsidy of ₹8 per kilometer if the fleet is deployed before September 30, 2027.
The passage explicitly stipulates that private operators operating under a PPP model with STUs via gross cost contracts are eligible for an operational subsidy of ₹8 per kilometer if deployment occurs prior to September 30, 2027.

Step-by-Step Solution

1
Analyze the passage for conditions governing private operators under Public-Private Partnership (PPP) models.
The text explicitly states: 'private operators running electric buses under a Public-Private Partnership (PPP) model via gross cost contracts with State Transport Undertakings (STUs) can claim an operational subsidy of ₹8 per kilometer, provided the contracted fleet is fully deployed prior to September 30, 2027.'
This establishes the exact fact-based rule for PPP operational subsidies.
2
Evaluate the statement regarding municipal transit corporations in cities with 1.5 million population.
A population of 1.5 million falls into the tier-2 category (500,000 to two million), which receives a 25% subsidy rather than 40%.
The 40% rate applies only to cities exceeding two million population.
3
Evaluate the statement regarding independent private fleet operators.
The text explicitly debars independent private fleet operators from direct purchase subsidies.
Direct capital purchase subsidies are reserved for municipal transit corporations.

Key Concept

Explicit Fact Extraction and Qualifier Verification
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