UPSC Prelims Practice Questions — Raksha Mantri approves grant of ‘Miniratna’ Category-I status to Yantra India Limited

Q1. With reference to the distinction between Miniratna Category-I and Miniratna Category-II CPSEs under the DPE framework, consider the following statements. Which of the statements given above is/are correct?

  1. A Category-I CPSE's Board may incur capital expenditure up to ₹500 crore (or its net worth, whichever is lower) without Government approval, whereas the ceiling for a Category-II CPSE is ₹300 crore (or 50% of its net worth, whichever is lower).
  2. Eligibility for Category-I requires a pre-tax profit of at least ₹30 crore in one of the last three years, a monetary profit threshold not stipulated for Category-II.
  3. A Category-II CPSE, unlike a Category-I CPSE, is permitted to depend on budgetary support from the Government.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q2. The guidelines for categorisation of Central Public Sector Enterprises into Maharatna, Navratna and Miniratna grades are framed and administered by which one of the following?

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

Q3. In the context of the 2021 reform of the Ordnance Factory Board, the seven newly created entities were established as which one of the following?

  • A. 100% Government-owned corporate entities registered under the Companies Act, 2013
  • B. Statutory corporations each created by a separate Act of Parliament
  • C. Departmental undertakings functioning directly under the Ministry of Defence
  • D. Public-private joint ventures with 51% Government equity

Q4. Which one of the following correctly states the maximum investment a Navratna CPSE's Board can commit to a single project without prior Government approval?

  • A. ₹1,000 crore or 15% of its net worth
  • B. ₹5,000 crore or 15% of its net worth
  • C. ₹500 crore or up to its net worth
  • D. ₹300 crore or 50% of its net worth

Q5. Yantra India Limited functions under the administrative control of which one of the following?

  • A. Department of Defence Production, Ministry of Defence
  • B. Department of Public Enterprises, Ministry of Finance
  • C. Defence Research and Development Organisation (DRDO), Ministry of Defence
  • D. Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry

Q6. Consider the following statements about the activities of Yantra India Limited. Which of the above is/are NOT correct?

  1. It manufactures Carbon Fibre Composites.
  2. It produces assembly products for Medium and Large Calibre Ammunition.
  3. It produces assembly products for Armoured Vehicles.
  4. It is the sole DPSU authorised to manufacture all types of defence ammunition in India.
  • A. 4 only
  • B. 3 and 4
  • C. 1 and 4
  • D. 2 only

Q7. With reference to the grant of Miniratna Category-I status to defence DPSUs, consider the following statements. Which of the statements given above is/are correct?

  1. Yantra India Limited was granted Miniratna Category-I status after Munitions India Limited, Armoured Vehicles Nigam Limited and India Optel Limited had already received the same status.
  2. Like those three DPSUs, Yantra India Limited was also an entity carved out of the Ordnance Factory Board.
  3. Unlike Yantra India Limited, whose exports rose above ₹300 crore in FY 2024-25, Munitions India Limited's exports remained nil throughout that period.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q8. Consider the following statements about the Department of Public Enterprises (DPE). Which of the above is/are NOT correctly stated?

  1. It is the nodal department that formulates policy on the categorisation of CPSEs.
  2. It is currently placed under the Ministry of Finance.
  3. It issues the guidelines governing the Maharatna, Navratna and Miniratna grades.
  4. It is the authority that actually confers Miniratna status on a Defence PSU.
  • A. 4 only
  • B. 2 and 4
  • C. 3 only
  • D. 1 and 4

Q9. With reference to the Ministry of Defence's Atmanirbhar Bharat initiatives, consider the following statements. Which of the statements given above is/are correct?

  1. The Ministry of Defence has set a target of achieving defence exports worth ₹50,000 crore by 2029.
  2. Five Positive Indigenisation Lists comprising over 5,000 items of DPSUs have been notified.
  3. The Ministry's target for annual defence production by 2029 is ₹50,000 crore, the same figure fixed for defence exports.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3