UPSC Prelims Practice Questions — In pursuance of the Union Budget 2025-26 announcement, Department of Economic Affairs (DEA), Ministry of Finance, has created a three-year Public Private Partnership (PPP) project pipeline

Q1. Which one of the following officials chairs the Public Private Partnership Appraisal Committee (PPPAC), the apex body for appraisal of central-sector PPP projects?

  • A. Secretary, Department of Economic Affairs
  • B. Chief Executive Officer, NITI Aayog
  • C. Cabinet Secretary
  • D. Secretary, Department for Promotion of Industry and Internal Trade

Q2. The three-year Public Private Partnership project pipeline announced in pursuance of the Union Budget 2025-26 was curated by which one of the following?

  • A. Department of Economic Affairs, Ministry of Finance
  • B. Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
  • C. Department of Expenditure, Ministry of Finance
  • D. NITI Aayog

Q3. In the context of the Viability Gap Funding (VGF) Scheme for PPP infrastructure, the term 'viability gap funding' refers to which one of the following?

  • A. A one-time or deferred capital grant to make projects that are economically justified but financially unviable, commercially viable
  • B. An interest-free 50-year loan extended to States for capital expenditure
  • C. A sovereign guarantee that protects PPP concessionaires against foreign-exchange fluctuation risk
  • D. A recurring subsidy that covers the entire operation and maintenance cost of a PPP project for its full concession period

Q4. Which one of the following best describes the purpose of the India Infrastructure Project Development Fund (IIPDF) Scheme notified in 2022?

  • A. It provides financial support to project sponsoring authorities to meet project-development expenses, including the cost of transaction advisers, for preparing bankable PPP projects
  • B. It exclusively funds the construction cost of every central-sector PPP project
  • C. It is the sole source of capital grants for bridging the viability gap of PPP projects
  • D. It always reimburses States the entire cost of any infrastructure project undertaken in PPP mode

Q5. The Task Force that drew up the National Infrastructure Pipeline (2019) functioned under which one of the following?

  • A. Department of Economic Affairs, Ministry of Finance
  • B. NITI Aayog
  • C. Ministry of Road Transport and Highways
  • D. Department for Promotion of Industry and Internal Trade

Q6. In the Union Budget 2025-26, the multi-sectoral reforms proposed under the 'third engine' (Investment) chiefly comprise which one of the following sets of areas?

  • A. Public Private Partnerships, Asset Monetisation, Mining and Domestic Manufacturing
  • B. Agriculture, MSMEs, Investment and Exports
  • C. Public Private Partnerships, Disinvestment, Banking and Insurance
  • D. Infrastructure, Health, Education and Skilling

Q7. The Hybrid Annuity Model (HAM), a PPP structure widely used for highway projects, was introduced by which one of the following?

  • A. National Highways Authority of India (NHAI)
  • B. National Investment and Infrastructure Fund (NIIF)
  • C. National Bank for Financing Infrastructure and Development (NaBFID)
  • D. Indian Railway Construction International (IRCON)