UPSC Prelims Practice Questions — Solar industry’s wish list for Union Budget

Q1. In how many tranches has the Government of India approved the Production Linked Incentive (PLI) scheme for 'National Programme on High Efficiency Solar PV Modules'?

  • A. Two
  • B. Three
  • C. Four
  • D. Five

Q2. With reference to the Production Linked Incentive (PLI) scheme for High Efficiency Solar PV Modules, consider the following statements: 1. Tranche-I has an outlay of Rs. 4,500 crore whereas Tranche-II has an outlay of Rs. 19,500 crore. 2. The manufacturing capacity awarded under Tranche-II exceeds that awarded under Tranche-I. 3. Unlike Tranche-I, Tranche-II permits Letters of Award only to fully integrated solar PV module manufacturing units and excludes partially integrated units. Which of the statements given above is/are correct?

  1. Tranche-I has an outlay of Rs. 4,500 crore whereas Tranche-II has an outlay of Rs. 19,500 crore.
  2. The manufacturing capacity awarded under Tranche-II exceeds that awarded under Tranche-I.
  3. Unlike Tranche-I, Tranche-II permits Letters of Award only to fully integrated solar PV module manufacturing units and excludes partially integrated units.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q3. Which one of the following Government of India schemes for the solar sector has the largest financial outlay?

  • A. PM Surya Ghar: Muft Bijli Yojana
  • B. Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM)
  • C. PLI Scheme for High Efficiency Solar PV Modules (Tranche-I + Tranche-II)
  • D. Jawaharlal Nehru National Solar Mission (JNNSM)

Q4. With reference to the pre-Budget memoranda submitted by Indian solar industry associations (such as NSEFA and SESI) for the Union Budget 2026-27, which of the following figured as principal demands? 1. Extension of the Production Linked Incentive (PLI) scheme to cover domestic manufacturing of solar ingots and wafers. 2. Launch of a second instalment of the PM-KUSUM scheme after the current phase ends. 3. Viability Gap Funding (VGF) for energy storage projects to complement solar deployment. 4. Complete abolition of Basic Customs Duty on all imported solar modules and cells. Which of the above is/are correctly identified?

  1. Extension of the Production Linked Incentive (PLI) scheme to cover domestic manufacturing of solar ingots and wafers.
  2. Launch of a second instalment of the PM-KUSUM scheme after the current phase ends.
  3. Viability Gap Funding (VGF) for energy storage projects to complement solar deployment.
  4. Complete abolition of Basic Customs Duty on all imported solar modules and cells.
  • A. 1 and 2 only
  • B. 1, 2 and 3 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q5. Both the PM-KUSUM scheme and the Production Linked Incentive (PLI) scheme for High Efficiency Solar PV Modules are implemented by which of the following Union Ministries?

  • A. Ministry of New and Renewable Energy
  • B. Ministry of Power
  • C. Ministry of Heavy Industries
  • D. Ministry of Agriculture and Farmers Welfare