Question

Difficulty: HardExplicit and Fact-Based Information Extraction

Read the following passage carefully:

"In November 2025, the Ministry of Power notified the revised framework for the National Smart Grid Mission (NSGM). Under the updated guidelines, state distribution utilities (DISCOMs) operating in coastal regions are eligible for a 60% central financial assistance (CFA) grant for deploying Advanced Metering Infrastructure (AMI), whereas inland DISCOMs receive a capped CFA grant of 45%. However, this central financial grant covers only the initial capital procurement of smart meters and communication gateways, explicitly excluding ongoing cloud server hosting fees and annual maintenance contracts. Furthermore, while public educational institutions and government hospitals located within urban DISCOM zones are granted complete exemption from mandatory peak-hour dynamic tariff surcharges, commercial enterprises and private industrial units remain strictly subject to these surcharges without exception. Additionally, the guidelines mandate that all smart meter hardware components must be certified by the Bureau of Indian Standards (BIS), but component testing procedures are conducted by accredited independent private testing laboratories rather than BIS internal labs."

Based on the passage provided above, which of the following statements regarding the NSGM revised framework are explicitly correct?

  1. Central financial assistance for inland DISCOMs is capped at 45% and explicitly excludes annual maintenance contracts.Answer
  2. B
    Public educational institutions operating in rural DISCOM zones are granted complete exemption from mandatory peak-hour dynamic tariff surcharges.
  3. Smart meter hardware testing procedures are conducted by accredited independent private testing laboratories rather than internal laboratories of the Bureau of Indian Standards.Answer
  4. D
    Commercial enterprises can apply for special administrative waivers from dynamic tariff surcharges if they satisfy designated energy efficiency benchmarks.

Answer

The correct statements are that central financial assistance for inland DISCOMs is capped at 45% excluding maintenance contracts, and component testing is conducted by accredited independent private testing laboratories rather than BIS internal labs.
The correct statements are directly supported by explicit details in the passage: inland DISCOMs are eligible for up to a 45% capped grant excluding maintenance fees, and hardware testing is carried out by accredited independent private testing laboratories rather than internal BIS labs.

Step-by-Step Solution

1
Analyze the statement regarding central financial assistance and maintenance costs for inland DISCOMs.
The passage states inland DISCOMs receive a capped CFA grant of 45% and that the grant covers only initial capital procurement, explicitly excluding annual maintenance contracts. This statement is correct.
Direct factual extraction from the second and third sentences of the passage.
2
Analyze the statement regarding dynamic tariff surcharge exemptions for educational institutions in rural zones.
The passage explicitly restricts the complete exemption to public educational institutions within 'urban DISCOM zones'. Extending this exemption to rural zones misreads the text qualifier. This statement is incorrect.
Verification of specific geographic scope limiters in the passage.
3
Analyze the statement regarding hardware testing procedures for smart meters.
The text confirms that testing procedures are conducted by accredited independent private testing laboratories rather than BIS internal labs. This statement is correct.
Direct detail extraction from the final sentence of the passage.
4
Analyze the statement regarding commercial enterprise surcharge waivers.
The text notes commercial enterprises remain subject to surcharges 'without exception'. This statement is incorrect.
Verification of explicit negations and absolute limiters.

Key Concept

Explicit and Fact-Based Information Extraction
Rate this question