UPSC Prelims Practice Questions — Wind turbine firms seek export-linked sops, PLI
Q1. According to the wind resource assessment underlying India's wind capacity planning, which one of the following States has the highest gross wind power potential at 150 metre hub height?
- A. Gujarat
- B. Rajasthan
- C. Karnataka
- D. Maharashtra
Q2. Consider the following statements comparing India's wind energy position as on 31 March 2026 with earlier reference points:
1. The wind capacity added during 2025-26 was the highest ever in a single year, exceeding the previous record set in 2016-17.
2. Installed wind capacity as on 31 March 2026 was more than twice the level of March 2014.
3. India's domestic wind turbine manufacturing capacity in March 2026 remained at roughly the same level as in 2014.
Which of the statements given above is/are correct?
- The wind capacity added during 2025-26 was the highest ever in a single year, exceeding the previous record set in 2016-17.
- Installed wind capacity as on 31 March 2026 was more than twice the level of March 2014.
- India's domestic wind turbine manufacturing capacity in March 2026 remained at roughly the same level as in 2014.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q3. The Indian Wind Turbine Manufacturers Association has sought a Production Linked Incentive-type scheme chiefly for indigenous manufacture of which one of the following turbine inputs, whose domestic forging capacity it identifies as the principal gap?
- A. Rotor blades and tubular steel towers
- B. Gearboxes and permanent-magnet generators
- C. Flanges and large-diameter bearings
- D. Nacelle covers and yaw drive motors
Q4. The Approved List of Models and Manufacturers (ALMM) for wind, in force since 31 July 2025 and carrying the mandatory domestic sourcing conditions for turbine components, is notified and operated by which one of the following?
- A. The Central Electricity Authority, the technical wing of the Ministry of Power
- B. The Ministry of New and Renewable Energy, Government of India
- C. The Bureau of Energy Efficiency, a statutory body under the Ministry of Power
- D. The Department of Heavy Industry under the Ministry of Heavy Industries
Q5. Under the National Programme on High Efficiency Solar PV Modules, the incentive payable to a selected manufacturer is computed on which one of the following bases?
- A. A one-time capital grant on plant and machinery, released in full at the time of financial closure of the unit
- B. Reimbursement of basic customs duty paid on imported cells and wafers throughout the life of the manufacturing unit
- C. Actual sales of modules over five years from commissioning, with the rate varying by module efficiency and local value addition
- D. An interest subvention on the entire project loan, fixed for the whole tenure irrespective of the unit's output
Q6. Consider the following statements about the two tranches of the National Programme on High Efficiency Solar PV Modules:
1. The first tranche had a smaller outlay than the second tranche, the two together accounting for a total of Rs 24,000 crore.
2. Under the first tranche, letters of award were issued to three successful bidders for setting up about 8,737 MW of fully integrated manufacturing units.
3. The second tranche is administered by the Ministry of Heavy Industries, while only the first tranche was administered by the Ministry of New and Renewable Energy.
Which of the statements given above is/are correct?
- The first tranche had a smaller outlay than the second tranche, the two together accounting for a total of Rs 24,000 crore.
- Under the first tranche, letters of award were issued to three successful bidders for setting up about 8,737 MW of fully integrated manufacturing units.
- The second tranche is administered by the Ministry of Heavy Industries, while only the first tranche was administered by the Ministry of New and Renewable Energy.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q7. In the pilot recently taken up in India's wind sector, a 'Contract for Difference' arrangement operates in which one of the following ways?
- A. The generator is paid the difference when the market price falls below an agreed strike price, and gives up the difference when the price rises above it
- B. The distribution company is paid the difference between its average power purchase cost and the retail tariff it is permitted to charge consumers
- C. The developer is granted the difference between the cost of imported and domestically made equipment, adjusted as a rebate on customs duty
- D. The Central Government meets the difference between the appraised project cost and the amount lenders are willing to finance, as an upfront grant
Q8. Consider the following statements about India's offshore and onshore wind policy:
1. The Viability Gap Funding scheme for offshore wind provides Rs 6,853 crore for 1,000 MW of projects divided equally between the Gujarat and Tamil Nadu coasts, besides a separate grant for upgrading two ports.
2. This scheme operationalises the National Offshore Wind Energy Policy, which seeks to tap potential within India's Exclusive Economic Zone.
3. India's wind capacity target is 156 GW by 2030, to be scaled up to 100 GW by 2036.
Which of the statements given above is/are correct?
- The Viability Gap Funding scheme for offshore wind provides Rs 6,853 crore for 1,000 MW of projects divided equally between the Gujarat and Tamil Nadu coasts, besides a separate grant for upgrading two ports.
- This scheme operationalises the National Offshore Wind Energy Policy, which seeks to tap potential within India's Exclusive Economic Zone.
- India's wind capacity target is 156 GW by 2030, to be scaled up to 100 GW by 2036.
- A. 1 only
- B. 2 and 3 only
- C. 1 and 2 only
- D. 1, 2 and 3
Q9. 'Rules of origin', one of the chapters covered by the India-EU Free Trade Agreement, determine which one of the following?
- A. Whether a good has undergone sufficient processing in a partner country to qualify for the concessional tariff under the agreement
- B. Whether the origin of an inbound investment lies in a partner country, for the purpose of screening it on national security grounds
- C. Which partner country's law will govern the seat and procedure of dispute settlement when an exporter and an importer disagree
- D. Whether a product's geographical origin entitles it to protection of its name as a registered geographical indication in the partner market
Q10. With reference to the India-European Union Free Trade Agreement, consider the following:
1. Its conclusion was announced at the 16th India-EU Summit, negotiations having been relaunched in 2022.
2. It provides preferential market access for more than 99 per cent of India's exports to the EU by trade value.
3. Negotiations on the financial services component were concluded in the final round of talks.
4. Dairy is among the sectors on which India has agreed to eliminate tariffs upon entry into force of the agreement.
Which of the above is/are correctly identified?
- Its conclusion was announced at the 16th India-EU Summit, negotiations having been relaunched in 2022.
- It provides preferential market access for more than 99 per cent of India's exports to the EU by trade value.
- Negotiations on the financial services component were concluded in the final round of talks.
- Dairy is among the sectors on which India has agreed to eliminate tariffs upon entry into force of the agreement.
- A. 1 and 3 only
- B. 2 and 4 only
- C. 1, 2 and 3 only
- D. 1, 2, 3 and 4
Q11. Which one of the following best describes the position occupied by Chinese wind turbine suppliers in the Indian market by 2024-25, which underlies Indian manufacturers' plea for cost-offsetting support?
- A. They had been kept below five per cent, unchanged since 2018-19, because of a standing prohibition on turbine imports
- B. They accounted for roughly 45 per cent of the market, having risen from about 10 per cent in 2018-19
- C. They accounted for the entire imported turbine segment, all European suppliers having exited India by 2018-19
- D. They were wholly excluded from supplying to Indian projects throughout the period after 2018-19 under local content rules
Q12. The Production Linked Incentive Schemes covering 14 key sectors, with an aggregate outlay of about Rs 1.97 lakh crore, were announced through which one of the following?
- A. The National Manufacturing Policy of 2011, along with the framework for National Investment and Manufacturing Zones
- B. The Atmanirbhar Bharat Abhiyan package of May 2020, along with the emergency credit line guarantee scheme for MSMEs
- C. The Union Budget for 2021-22, presented to Parliament on 1 February 2021
- D. The Union Budget for 2023-24, presented along with the launch of the National Green Hydrogen Mission