Question

Difficulty: MediumExplicit and Fact-Based Information Extraction

Read the following passage carefully:

"In February 2025, the Ministry of Science and Technology released the operational framework for the National Deep Tech Startup Policy (NDTSP). The policy mandates that eligible deep tech startups will receive non-dilutive financial grants up to ₹5 crore for prototyping, provided they possess a registered patent in India prior to the date of application. However, startups operating in the defense technology sector are exempted from this pre-existing patent requirement, provided they secure an explicit clearance from the Department of Defence Production within six months of grant disbursal. The framework strictly prohibits the utilization of grant funds for commercial marketing campaigns or international trade shows. Furthermore, state-level implementation is monitored by designated State Nodal Agencies, which must submit semi-annual compliance reports to the National Steering Committee."

Based on the passage above, which of the following statements is explicitly correct regarding the National Deep Tech Startup Policy?

  1. A
    Startups operating in the defense technology sector must possess a registered Indian patent prior to applying for the grant.
  2. Eligible deep tech startups can receive non-dilutive financial grants of up to ₹5 crore for prototyping.Answer
  3. C
    Grant funds may be utilized for international trade shows if approved by the State Nodal Agency.
  4. D
    State Nodal Agencies are required to submit quarterly audit reports directly to the Ministry of Science and Technology.

Answer

Eligible deep tech startups can receive non-dilutive financial grants of up to ₹5 crore for prototyping.
The passage explicitly states that eligible deep tech startups will receive non-dilutive financial grants up to ₹5 crore for prototyping, making this statement directly supported by the text.

Step-by-Step Solution

1
Scan the passage for explicit facts regarding financial grant limits and conditions under the National Deep Tech Startup Policy.
Identified the sentence: 'The policy mandates that eligible deep tech startups will receive non-dilutive financial grants up to ₹5 crore for prototyping...'
Direct text extraction verifies the exact grant amount and purpose stated.
2
Verify each option against the explicit qualifiers, exemptions, and prohibitions in the passage.
Defense startups have an exemption (not a mandatory pre-patent requirement); trade shows are strictly prohibited; reports are semi-annual to the National Steering Committee (not quarterly).
Ensures that distractors misrepresenting explicit conditions or scope limiters are eliminated.

Key Concept

Explicit and Fact-Based Information Extraction
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