UPSC Prelims Practice Questions — NLCIL signs MoU on thermal, renewable energy projects

Q1. With reference to NLC India Limited (NLCIL) and National Aluminium Company Limited (NALCO), which signed a Memorandum of Understanding in February 2026 for thermal and renewable energy collaboration, consider the following statements: Which of the statements given above is/are correct?

  1. Both NLCIL and NALCO are Navratna Central Public Sector Enterprises, but they operate under different administrative Union Ministries.
  2. NLCIL is administratively under the Ministry of Mines, whereas NALCO falls exclusively under the Ministry of Coal.
  3. The proposed 1,200 MW project under the MoU is structured as a thermal captive power project to address NALCO's long-term industrial power requirements.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q2. Which one of the following constitutes the single largest capacity component envisaged under the NLCIL–NALCO Memorandum of Understanding signed in February 2026?

  • A. 600 MW solar park to be developed by NLC India Renewables Limited
  • B. 1,200 MW thermal captive power project
  • C. 500 MW group-captive wind project in Odisha
  • D. 800 MW lignite-based pit-head expansion at Neyveli

Q3. With reference to the NLCIL–NALCO Memorandum of Understanding of February 2026, consider the following as stated provisions of the MoU: Which of the above is/are NOT correctly identified as a provision of the MoU?

  1. A 1,200 MW Thermal Captive Power Project to meet NALCO's power requirements.
  2. Acquisition of bauxite mining leases in Odisha by NLCIL from NALCO.
  3. Long-term coal supply tie-ups, including captive and group-captive arrangements.
  4. Mandatory equity participation by NALCO in the proposed public listing of NLC India Renewables Limited (NIRL).
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 4
  • D. 3 only

Q4. Consider the following pairs relating to entities associated with the February 2026 NLCIL–NALCO Memorandum of Understanding: Which of the above pairs is/are correctly matched?

  1. NLC India Limited (NLCIL) — Navratna CPSE under the Ministry of Coal
  2. National Aluminium Company Limited (NALCO) — Navratna CPSE under the Ministry of Mines
  3. NLC India Renewables Limited (NIRL) — wholly owned subsidiary of NLCIL for renewable energy
  4. National Aluminium Company Limited (NALCO) — headquartered at Mumbai, Maharashtra
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 3
  • D. 3 only

Q5. NLC India Limited (NLCIL), which signed a Memorandum of Understanding with NALCO in February 2026 for a 1,200 MW thermal captive power project and renewable energy collaboration, functions under the administrative control of which one of the following Union Ministries?

  • A. Ministry of Power
  • B. Ministry of New and Renewable Energy
  • C. Ministry of Coal
  • D. Ministry of Mines
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