UPSC Prelims Practice Questions — Infrastructure Financing in India: Trends, Institutions, and Innovations

Q1. Who is the chairperson of the National Bank for Financing Infrastructure and Development (NaBFID)?

  • A. K. V. Kamath
  • B. Uday Kotak
  • C. Shaktikanta Das
  • D. Rajiv Kumar

Q2. In the context of NaBFID's mandate, what does 'non-recourse infrastructure financing' mean?

  • A. Lending where repayment is secured only by the cash flows and assets of the specific project, with no claim on the sponsor's other assets
  • B. Lending that carries a sovereign guarantee from the Government of India for the full loan amount
  • C. Concessional lending that need not be repaid if the project becomes commercially unviable
  • D. Lending extended only against the personal guarantee of the project promoters

Q3. Which one of the following best describes 'asset monetisation' as operationalised under the National Monetisation Pipeline?

  • A. Unlocking value from operating brownfield public assets by transferring usage rights to private players for a defined period, while ownership stays with the government
  • B. The outright sale and permanent transfer of ownership of all public infrastructure assets to private investors
  • C. The exclusive use of disinvestment of government equity in public sector enterprises
  • D. The acquisition of distressed private infrastructure assets by the government for revival

Q4. Which one of the following correctly characterises the first National Monetisation Pipeline (NMP 1.0)?

  • A. Launched in 2021 with a monetisation target of about ₹6 lakh crore over FY22–FY25
  • B. Launched in 2021 with a monetisation target of ₹16.72 lakh crore over FY26–FY30
  • C. Launched in 2019 with an investment projection of ₹111 lakh crore over FY20–FY25
  • D. Launched in 2025 with a monetisation target of ₹6 lakh crore over FY26–FY30

Q5. Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) in India are regulated by which authority?

  • A. Securities and Exchange Board of India (SEBI)
  • B. Reserve Bank of India (RBI)
  • C. Insurance Regulatory and Development Authority of India (IRDAI)
  • D. Ministry of Corporate Affairs (MCA)

Q6. Which one of the following was India's first Real Estate Investment Trust (REIT)?

  • A. Embassy Office Parks REIT
  • B. Mindspace Business Parks REIT
  • C. Brookfield India Real Estate Trust
  • D. Nexus Select Trust

Q7. Under which regulatory classification are the funds managed under the National Investment and Infrastructure Fund (NIIF) platform registered with SEBI?

  • A. Category II Alternative Investment Fund (AIF)
  • B. Category I Alternative Investment Fund (AIF)
  • C. Category III Alternative Investment Fund (AIF)
  • D. Open-ended Mutual Fund

Q8. How many funds are currently managed under the National Investment and Infrastructure Fund (NIIF) platform?

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

Q9. In which Union Budget were the Infrastructure Risk Guarantee Fund (IRGF) and City Economic Regions proposed?

  • A. Union Budget 2026-27
  • B. Union Budget 2025-26
  • C. Union Budget 2024-25
  • D. Union Budget 2023-24

Q10. With reference to the National Infrastructure Pipeline (NIP) for FY2020-25, consider the following sectors: 1. Energy 2. Roads 3. Defence equipment production 4. Urban infrastructure Which of the above is/are correctly identified as sectors holding a major share of the projected NIP investment?

  1. Energy
  2. Roads
  3. Defence equipment production
  4. Urban infrastructure
  • A. 1 and 2 only
  • B. 3 and 4 only
  • C. 1, 2 and 4
  • D. 1, 2, 3 and 4

Q11. With reference to the evolution of Development Finance Institutions (DFIs) in India, consider the following statements: 1. IFCI, established in 1948, was India's first development finance institution. 2. IDFC, set up in 1997 as an infrastructure financier, was later converted into a bank. 3. NaBFID, set up under the NaBFID Act, 2021, is the fourth All India Financial Institution in India. Which of the statements given above is/are correct?

  1. IFCI, established in 1948, was India's first development finance institution.
  2. IDFC, set up in 1997 as an infrastructure financier, was later converted into a bank.
  3. NaBFID, set up under the NaBFID Act, 2021, is the fourth All India Financial Institution in India.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q12. What is the public capital expenditure outlay proposed in the Union Budget 2026-27?

  • A. ₹12.2 lakh crore
  • B. ₹11.21 lakh crore
  • C. ₹11.11 lakh crore
  • D. ₹2.63 lakh crore