UPSC Prelims Practice Questions — Cabinet okays Semicon 2.0, mobile, urea manufacturing schemes, highways

Q1. Among the manufacturing and infrastructure proposals cleared by the Union Cabinet/CCEA on 15 July 2026, which one carried the single largest budgetary outlay?

  • A. India Semiconductor Mission (ISM) 2.0
  • B. Mobile Phone Manufacturing Scheme (MPMS) 2.0
  • C. The two Varanasi highway decongestion corridors
  • D. The nine new gas-based urea plants

Q2. Semicon 2.0, with a total budget outlay of ₹1,27,500 crore, was approved in July 2026 by the Union Cabinet chaired by whom?

  • A. The Prime Minister
  • B. The Union Finance Minister
  • C. The Union Minister of Electronics and Information Technology
  • D. The Cabinet Secretary

Q3. The Semicon India Programme, whose expanded second edition (Semicon 2.0) was cleared in 2026, is operationalised through the India Semiconductor Mission functioning under which Union Ministry?

  • A. Ministry of Electronics and Information Technology
  • B. Ministry of Science and Technology (Department of Science and Technology)
  • C. Ministry of Commerce and Industry (DPIIT)
  • D. Ministry of Communications (Department of Telecommunications)

Q4. With reference to the Semicon India Programme and its second edition (Semicon 2.0), consider the following statements: 1. The Semicon India Programme was originally launched in December 2021 with an outlay of ₹76,000 crore. 2. Semicon 2.0 was approved with an enhanced total budget outlay of ₹1,27,500 crore. 3. Under the first phase, twelve manufacturing units had been approved with cumulative investment exceeding ₹1.64 lakh crore. Which of the statements given above are correct?

  1. The Semicon India Programme was originally launched in December 2021 with an outlay of ₹76,000 crore.
  2. Semicon 2.0 was approved with an enhanced total budget outlay of ₹1,27,500 crore.
  3. Under the first phase, twelve manufacturing units had been approved with cumulative investment exceeding ₹1.64 lakh crore.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q5. The Mobile Phone Manufacturing Scheme (MPMS) 2.0 approved in July 2026 is scheduled to run over which of the following periods?

  • A. FY 2026-27 to FY 2030-31
  • B. FY 2020-21 to FY 2025-26
  • C. FY 2025-26 to FY 2027-28
  • D. FY 2026-27 to FY 2035-36

Q6. The Mobile Phone Manufacturing Scheme (MPMS) 2.0 is officially projected to create approximately how many direct jobs over its tenure?

  • A. 60,000
  • B. 6,00,000
  • C. 30,000
  • D. 1,50,000

Q7. With reference to the Production Linked Incentive (PLI) scheme launched in 2020, consider the following statements: 1. It was announced to cover 14 key sectors of manufacturing. 2. Mobile phone (and specified electronic components) manufacturing was one of the sectors covered. 3. Urea/fertiliser manufacturing was one of the sectors covered under the 2020 PLI scheme. Which of the statements given above are correct?

  1. It was announced to cover 14 key sectors of manufacturing.
  2. Mobile phone (and specified electronic components) manufacturing was one of the sectors covered.
  3. Urea/fertiliser manufacturing was one of the sectors covered under the 2020 PLI scheme.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q8. The Production Linked Incentive (PLI) scheme announced in 2020 covers how many key sectors?

  • A. 14
  • B. 10
  • C. 12
  • D. 16

Q9. Who is the chairperson of the Cabinet Committee on Economic Affairs (CCEA), the body that clears major economic-policy proposals such as the 2026 urea and highway approvals?

  • A. The Prime Minister
  • B. The Union Finance Minister
  • C. The Union Home Minister
  • D. The Vice-President of India

Q10. With reference to the National Investment Policy for Urea (NIPU-2026), consider the following statements: 1. It provides for the setting up of around nine new gas-based urea plants. 2. These plants are targeted to add about 10 million tonnes of urea production capacity. 3. It introduces a return-on-equity band with a floor of 12% and a ceiling of 16%. 4. It mandates that all new urea plants be coal-based rather than gas-based. Which of the statements given above are correct?

  1. It provides for the setting up of around nine new gas-based urea plants.
  2. These plants are targeted to add about 10 million tonnes of urea production capacity.
  3. It introduces a return-on-equity band with a floor of 12% and a ceiling of 16%.
  4. It mandates that all new urea plants be coal-based rather than gas-based.
  • A. 1, 2 and 3 only
  • B. 2 and 4 only
  • C. 1 and 3 only
  • D. 1, 2, 3 and 4

Q11. The two Varanasi decongestion corridors approved in 2026 are to be executed under the Hybrid Annuity Model (HAM). Under HAM, national highway projects are financed in which of the following ways?

  • A. The government funds a part of the project cost during construction and pays the balance to the developer as fixed annuities over the operation period
  • B. The private developer bears the entire project cost and recovers it solely through toll collection
  • C. The government fully funds construction and permanently transfers tolling rights to the contractor
  • D. The project is financed entirely by a one-time viability gap grant with no government construction-stage funding

Q12. As part of the 15 July 2026 push to localise manufacturing amid global uncertainties, which of the following were cleared in the same round of Cabinet/CCEA approvals? 1. India Semiconductor Mission (ISM) 2.0 2. Mobile Phone Manufacturing Scheme (MPMS) 2.0 3. National Investment Policy for Urea (NIPU-2026) 4. Two elevated highway corridors to decongest Varanasi Which of the statements given above are correct?

  1. India Semiconductor Mission (ISM) 2.0
  2. Mobile Phone Manufacturing Scheme (MPMS) 2.0
  3. National Investment Policy for Urea (NIPU-2026)
  4. Two elevated highway corridors to decongest Varanasi
  • A. 1, 2 and 3 only
  • B. 2, 3 and 4 only
  • C. 1, 3 and 4 only
  • D. 1, 2, 3 and 4