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Difficulty: Very hardExplicit and Fact-Based Information Extraction

Read the following passage carefully:
In October 2025, the Ministry of Petroleum and Natural Gas notified the National Biofuel Logistics and Supply Infrastructure Policy (NBLSIP). Under Section 4(b) of the policy, financial capital subsidies up to 25% are extended exclusively to non-government cooperative societies establishing cold-chain bio-ethanol distribution hubs in Special Category States, provided these hubs process a minimum of 500 metric tonnes daily and achieve operational status by December 2027. State-owned public sector undertakings (PSUs) are explicitly barred from claiming capital subsidies under Section 4(b); however, PSUs can access interest subvention on long-term loans under Section 6(a) if they partner with local indigenous farming collectives holding at least a 51% equity stake. Furthermore, private logistics firms operating in non-Special Category States qualify for tax exemptions under Section 9, but only if they utilize 100% electrified heavy-duty transport fleets for feedstock movement.

Statement: Based strictly on the passage above, a State-owned public sector undertaking (PSU) establishing a bio-ethanol hub in a Special Category State with a capacity of 600 metric tonnes daily by November 2027 is eligible to receive a 25% financial capital subsidy under Section 4(b) provided it partners with a local indigenous farming collective holding a 55% equity stake.

Answer: Answer

Answer

The statement is False. Section 4(b) explicitly bars PSUs from receiving financial capital subsidies, reserving them exclusively for non-government cooperative societies. Meeting equity partnership thresholds unlocks interest subvention under Section 6(a) rather than capital subsidies under Section 4(b).
The correct evaluation is False because the text explicitly prohibits State-owned public sector undertakings (PSUs) from claiming Section 4(b) financial capital subsidies. The 55% equity partnership with a local indigenous farming collective unlocks interest subvention under Section 6(a), but does not make the PSU eligible for capital subsidies under Section 4(b).

Step-by-Step Solution

1
Locate the provision governing Section 4(b) capital subsidies in the passage.
Section 4(b) grants capital subsidies exclusively to non-government cooperative societies and explicitly bars state-owned PSUs.
To verify if PSUs are eligible for Section 4(b) capital subsidies.
2
Analyze the statutory purpose of the 51% indigenous collective equity partnership.
Equity partnerships grant PSUs access to interest subvention on long-term loans under Section 6(a), not capital subsidies under Section 4(b).
To check whether meeting the 55% equity requirement overrides the Section 4(b) PSU exclusion.
3
Evaluate the statement's claim against explicit text provisions.
The statement conflates Section 6(a) interest subvention eligibility conditions with Section 4(b) capital subsidy rules.
To conclude whether the statement is factually accurate.

Key Concept

Explicit condition verification and statutory exclusion mapping in technical policy passages.
Estimated Time:2m 0s
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Topics

Explicit and Fact-Based Information Extraction

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