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Difficulty: HardExplicit and Fact-Based Information Extraction

Read the following passage carefully:
In January 2026, the Department for Promotion of Industry and Internal Trade (DPIIT) notified the operational framework for the National Deep Tech Startup Policy (NDTSP). Under the framework, eligible startups engaged in quantum computing, synthetic biology, and advanced robotics are entitled to a fiscal incentive of up to ₹5 crore for patent filing and prototype testing. However, startups operating primarily in consumer software applications, cryptocurrency trading platforms, or e-commerce aggregation are explicitly excluded from these fiscal grants. To qualify for funding, a firm must hold at least 51% domestic equity ownership and maintain a minimum R&D expenditure of 20% of its total operational cost over the preceding two fiscal years. The framework mandates that grants will be disbursed in three equal installments, provided that second-year milestones are verified by an independent technical evaluation panel appointed by DPIIT. Non-compliance with milestone timelines results in a mandatory 18-month cooling-off period before re-application.

Based strictly on the passage above, which of the following conditions must be met for a startup to qualify for fiscal grants under the NDTSP?

  1. Holding at least 51% domestic equity ownership and allocating a minimum of 20% of operational costs to R&D over the preceding two fiscal years.Answer
  2. B
    Operating primarily in consumer software applications provided domestic equity ownership exceeds 51%.
  3. C
    Submitting second-year milestone verification reports directly to the executive board of DPIIT.
  4. D
    Securing international patent registrations prior to submitting the grant application.

Answer

Holding at least 51% domestic equity ownership and allocating a minimum of 20% of operational costs to R&D over the preceding two fiscal years.
The passage explicitly states that to qualify for funding under the NDTSP guidelines, a firm must hold at least 51% domestic equity ownership and maintain a minimum R&D expenditure of 20% of its total operational cost over the preceding two fiscal years.

Step-by-Step Solution

1
Scan the passage for specific qualification criteria required for NDTSP fiscal grants.
Identified the explicit sentence: 'To qualify for funding, a firm must hold at least 51% domestic equity ownership and maintain a minimum R&D expenditure of 20% of its total operational cost over the preceding two fiscal years.'
Explicit factual extraction questions require matching exact conditional qualifiers stated in the text.
2
Evaluate candidate options against the extracted facts and identified exclusions.
The option stating the requirement of 51% domestic equity and 20% R&D expenditure precisely mirrors the passage detail without addition or modification.
Ensures no extra-textual assumptions or misread qualifiers are introduced.

Key Concept

Explicit Fact Extraction with Scope Limiters
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Topics

Explicit and Fact-Based Information Extraction

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