Question

Difficulty: MediumInference and Logical Deduction

Read the passage below carefully and answer the question that follows:

Under the newly enacted Micro-Electronics Resilience Scheme, the Ministry of Industrial Development provides state-subsidized capital grants exclusively to domestic manufacturing units that transition from imported silicon wafers to locally fabricated substrate materials. To remain eligible for annual grant renewals, recipient firms must submit certified quarterly audits demonstrating that at least sixty percent of their total operational energy is sourced from captive renewable installations. Furthermore, any recipient firm found exporting more than thirty percent of its annual output to non-treaty nations forfeits its subsidy rights for a period of three fiscal years. While several industry trade groups argue that the captive renewable energy mandate imposes an unreasonable financial burden on newly established manufacturing units, government analysts maintain that national supply chain security cannot be decoupled from sustainable energy infrastructure.

Based strictly on the passage above, which of the following statements must logically be true regarding a domestic manufacturing unit participating in the scheme?

  1. A manufacturing unit that relies entirely on conventional, non-renewable grid electricity will fail to qualify for annual grant renewal under the scheme.Answer
  2. B
    The primary objective of the Micro-Electronics Resilience Scheme is to reduce operational overhead for infant semiconductor manufacturing companies.
  3. C
    Any recipient firm that exports forty percent of its total annual output to treaty partner nations will automatically lose its subsidy rights for three fiscal years.
  4. D
    Fabricating substrate materials domestically generates a smaller carbon footprint than importing silicon wafers from overseas suppliers.

Answer

A manufacturing unit that relies entirely on conventional, non-renewable grid electricity will fail to qualify for annual grant renewal under the scheme.
The passage establishes that sourcing at least 60% of operational energy from captive renewable installations is a strict requirement for annual grant renewal. Therefore, a domestic manufacturing unit relying 100% on non-renewable grid power cannot satisfy this threshold and must logically fail annual renewal.

Step-by-Step Solution

1
Identify the explicit criteria for annual grant renewal in the passage.
The passage mandates that recipient firms must source at least 60% of their operational energy from captive renewable installations to maintain eligibility for annual renewals.
This establishes a necessary condition for maintaining grant eligibility.
2
Evaluate the condition of a firm using 0% renewable energy (relying entirely on non-renewable grid power).
A firm using 0% renewable energy falls below the mandatory 60% threshold required by the scheme.
Applying standard logical deduction, failing a mandatory requirement strictly leads to non-qualification.
3
Deduce the logical necessity of the correct statement.
It logically follows that such a firm will fail to qualify for annual grant renewal.
The conclusion is derived purely from the explicit rules set forth in the passage without external assumptions.

Key Concept

Necessary condition evaluation in logical reading comprehension
Estimated Time:1m 30s
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