UPSC Prelims Practice Questions — GAIL to invest ₹3,800 crore in building solar power projects

Q1. GAIL is described as a 'Maharatna' CPSE. In this context, which one of the following best describes what Maharatna status specifically confers on the enterprise?

  • A. Enhanced autonomy under which the board may make equity investments of up to 15% of the company's net worth in a single project, subject to a ceiling of ₹5,000 crore, without prior government approval
  • B. A statutory exemption from any future disinvestment of government shareholding in the enterprise
  • C. A sovereign guarantee automatically extended by the Union government to all commercial borrowings raised by the enterprise
  • D. Freedom from parliamentary and CAG audit oversight in respect of the enterprise's commercial decisions

Q2. GAIL (India) Limited, the entity making the ₹3,800 crore solar investment, functions under the administrative control of which one of the following Union Ministries alone?

  • A. Ministry of Petroleum and Natural Gas
  • B. Ministry of Power
  • C. Ministry of New and Renewable Energy
  • D. Ministry of Heavy Industries

Q3. With reference to the eligibility distinction between Maharatna and Navratna Central Public Sector Enterprises, consider the following statements: 1. A CPSE must already hold Navratna status before it can be considered for Maharatna status. 2. Maharatna eligibility requires an average annual turnover of more than ₹25,000 crore over the preceding three years. 3. Unlike Navratna companies, Maharatna CPSEs are exempted from the requirement of being listed on Indian stock exchanges. Which of the statements given above is/are correct?

  1. A CPSE must already hold Navratna status before it can be considered for Maharatna status.
  2. Maharatna eligibility requires an average annual turnover of more than ₹25,000 crore over the preceding three years.
  3. Unlike Navratna companies, Maharatna CPSEs are exempted from the requirement of being listed on Indian stock exchanges.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q4. The grant and periodic review of Maharatna, Navratna and Miniratna status to Central Public Sector Enterprises is operationalised by which one of the following?

  • A. Department of Public Enterprises under the Ministry of Finance
  • B. Department of Public Enterprises under the Ministry of Heavy Industries
  • C. Department of Investment and Public Asset Management (DIPAM)
  • D. Ministry of Corporate Affairs

Q5. GAIL's newly approved 700 MW solar projects are described as 'captive' projects. In this context, a captive power project is best defined as one that:

  • A. Generates electricity primarily for the consumption of the producing enterprise's own operations rather than for sale to the general grid
  • B. Is wholly owned by a foreign joint-venture partner but located on Indian territory
  • C. Sells its entire output to State electricity distribution companies under long-term power purchase agreements
  • D. Is set up exclusively to export surplus renewable power to neighbouring countries

Q6. Within GAIL's ₹3,800 crore, 700 MW solar plan, which one of the following is the single largest generation component?

  • A. The 600 MW solar project at the TUSCO Solar Park, Jhansi, Uttar Pradesh
  • B. The 550 MWh Battery Energy Storage System attached to the Uttar Pradesh project
  • C. The 100 MW solar project at Chhatrapati Sambhajinagar, Maharashtra
  • D. GAIL's existing 147 MW of installed renewable capacity

Q7. With reference to India's climate commitments and the 500 GW non-fossil target, consider the following statements: 1. India's COP26 'Panchamrit' pledge set a target of 500 GW of non-fossil fuel based electricity installed capacity by 2030. 2. The same set of commitments included achieving net-zero emissions by the year 2050. 3. India crossed the milestone of 50% of its cumulative installed electricity capacity from non-fossil sources ahead of the 2030 target. Which of the statements given above is/are correct?

  1. India's COP26 'Panchamrit' pledge set a target of 500 GW of non-fossil fuel based electricity installed capacity by 2030.
  2. The same set of commitments included achieving net-zero emissions by the year 2050.
  3. India crossed the milestone of 50% of its cumulative installed electricity capacity from non-fossil sources ahead of the 2030 target.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. India's headline commitment of 500 GW of non-fossil fuel based installed electricity capacity by 2030 was announced by the Prime Minister at which one of the following international climate summits?

  • A. COP26, Glasgow (2021)
  • B. COP21, Paris (2015)
  • C. COP27, Sharm el-Sheikh (2022)
  • D. COP28, Dubai (2023)

Q9. With reference to India's renewable energy bidding trajectory and capacity status, consider the following: 1. The annual RE capacity to be bid out from FY2023-24 to FY2027-28 is 50 GW per year. 2. Each such annual bid is to include at least 10 GW of wind power capacity. 3. India's total installed renewable energy capacity reached 220.10 GW as of 31 March 2025. 4. The record renewable capacity addition in FY2024-25 was 45 GW. Which of the statements given above are correctly identified?

  1. The annual RE capacity to be bid out from FY2023-24 to FY2027-28 is 50 GW per year.
  2. Each such annual bid is to include at least 10 GW of wind power capacity.
  3. India's total installed renewable energy capacity reached 220.10 GW as of 31 March 2025.
  4. The record renewable capacity addition in FY2024-25 was 45 GW.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q10. India's first dedicated Viability Gap Funding (VGF) scheme for Battery Energy Storage Systems, approved by the Union Cabinet in 2024, is led by which Ministry as the nodal ministry?

  • A. Ministry of New and Renewable Energy
  • B. Ministry of Heavy Industries
  • C. Ministry of Finance
  • D. NITI Aayog

Q11. Central PSUs such as GAIL and NTPC are contributing renewable capacity toward national RE targets. Which Union Ministry serves as the nodal ministry for renewable energy in India, framing and coordinating these targets?

  • A. Ministry of New and Renewable Energy
  • B. Ministry of Power
  • C. Ministry of Environment, Forest and Climate Change
  • D. Ministry of Petroleum and Natural Gas

Q12. The Jawaharlal Nehru National Solar Mission (JNNSM), launched in 2010, is best described as which one of the following?

  • A. One of the national missions under the National Action Plan on Climate Change, aimed at establishing India as a global leader in solar energy
  • B. A statutory regulatory authority created by an Act of Parliament to license solar developers
  • C. A centrally sponsored subsidy scheme confined solely to rooftop solar installations on government buildings
  • D. An inter-governmental treaty body headquartered in India for coordinating solar deployment among member countries