Examkin

Question

Difficulty: MediumExplicit and Fact-Based Information Extraction

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

In November 2025, the Ministry of Mines notified the operational guidelines for the National Critical Minerals Processing Scheme (NCMPS). Under this scheme, financial assistance up to 40% of the capital expenditure is provided exclusively for setting up domestic refining facilities for lithium, cobalt, and rare earth elements. Processing units established in designated Coastal Economic Zones (CEZs) are eligible for an additional 10% infrastructure subsidy, whereas inland units receive no such additional subsidy. Furthermore, 100% foreign direct investment (FDI) is permitted through the automatic route for mineral refining, provided the entity does not engage in raw ore mining. The scheme strictly excludes state-owned public sector undertakings (PSUs) from claiming the capital expenditure financial assistance.

Based strictly on the passage provided, which of the following statements are correct?

  1. Domestic processing units established in Coastal Economic Zones are eligible for an additional infrastructure subsidy beyond the standard capital expenditure assistance.Answer
  2. State-owned public sector undertakings are explicitly prohibited from claiming capital expenditure financial assistance under the scheme.Answer
  3. C
    Entities involved in raw ore mining are permitted 100% foreign direct investment through the automatic route for setting up mineral refining facilities.
  4. D
    Inland refining facilities receive a reduced 5% infrastructure subsidy under the NCMPS operational guidelines.

Answer

The correct statements are that processing units in Coastal Economic Zones receive an additional infrastructure subsidy, and that state-owned public sector undertakings are excluded from claiming capital expenditure assistance.
The passage explicitly verifies two factual statements: processing units in Coastal Economic Zones qualify for an additional 10% infrastructure subsidy beyond capital expenditure assistance, and state-owned public sector undertakings are strictly barred from receiving capital expenditure financial assistance.

Step-by-Step Solution

1
Verify the statement regarding Coastal Economic Zone processing units against the text.
The text states: 'Processing units established in designated Coastal Economic Zones (CEZs) are eligible for an additional 10% infrastructure subsidy'. This confirms the statement is true.
Direct factual extraction from sentence 3 of the passage.
2
Verify the statement regarding state-owned public sector undertakings.
The text states: 'The scheme strictly excludes state-owned public sector undertakings (PSUs) from claiming the capital expenditure financial assistance'. This confirms the statement is true.
Direct factual extraction from the final sentence of the passage.
3
Evaluate the statements regarding FDI conditions for mining entities and inland facility subsidies.
FDI is allowed provided entities do NOT mine raw ore, and inland units receive NO additional subsidy. Therefore, both remaining statements contradict explicit facts in the text.
Identifying negations and negative modifiers in explicit passage conditions.

Key Concept

Explicit and Fact-Based Information Extraction
Rate this question

Topics

Explicit and Fact-Based Information Extraction

More questions from this topic