UPSC Prelims Practice Questions — H.D. Kumaraswamy launches PLI 1.2: Major Push to India’s Specialty Steel Ecosystem

Q1. With reference to the Production Linked Incentive (PLI) Scheme for Specialty Steel, consider the following statements comparing the original scheme with the PLI 1.2 round: 1. The original scheme approved in 2021 covered five indicative product categories, whereas PLI 1.2 covers four product categories. 2. The financial outlay of the scheme as approved by the Union Cabinet in 2021 was ₹6,322 crore for five years. 3. PLI 1.2 was accompanied by a fresh Union Cabinet-approved outlay of ₹11,887 crore that replaced the original outlay. Which of the statements given above is/are correct?

  1. The original scheme approved in 2021 covered five indicative product categories, whereas PLI 1.2 covers four product categories.
  2. The financial outlay of the scheme as approved by the Union Cabinet in 2021 was ₹6,322 crore for five years.
  3. PLI 1.2 was accompanied by a fresh Union Cabinet-approved outlay of ₹11,887 crore that replaced the original outlay.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q2. With reference to the MoUs signed under PLI 1.2 (Third round) for Specialty Steel in February 2026, consider the following statements: 1. The number of MoUs/projects signed was 85. 2. The number of participating companies was 55. 3. The total investment committed by participating companies was ₹46,000 crore. 4. The committed downstream capacity was 8.7 million tonnes. Which of the statements given above are correct?

  1. The number of MoUs/projects signed was 85.
  2. The number of participating companies was 55.
  3. The total investment committed by participating companies was ₹46,000 crore.
  4. The committed downstream capacity was 8.7 million tonnes.
  • A. 1, 2 and 4
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q3. The Production Linked Incentive (PLI) Scheme 1.2 for Specialty Steel is operationalised by which one of the following Union Ministries?

  • A. Ministry of Steel
  • B. Ministry of Heavy Industries
  • C. Ministry of Commerce and Industry
  • D. Ministry of Mines

Q4. Under PLI 1.2, the product category 'Steel Grades for Strategic Sector' caters to defence, space and nuclear end-uses. The scheme covering this category is administered by which one of the following?

  • A. Ministry of Steel
  • B. Ministry of Defence
  • C. Department of Atomic Energy
  • D. Ministry of Heavy Industries

Q5. Which one of the following is the product category under PLI 1.2 that is specifically dedicated to defence, space and nuclear (strategic) applications?

  • A. Steel Grades for Strategic Sector
  • B. Commercial Grades – Category 1
  • C. Commercial Grades – Category 2
  • D. Coated & Wire Products

Q6. As of 2026, how many rounds of the PLI Scheme for Specialty Steel have been launched by the Ministry of Steel?

  • A. Two
  • B. Three
  • C. Four
  • D. Five

Q7. Consider the following statements about the rounds of the PLI Specialty Steel scheme: 1. PLI 1.1 (second round) was launched in January 2025, while the PLI 1.2 (third round) scheme was launched in November 2025. 2. PLI 1.1 retained the same five product categories as the original 2021 scheme, whereas PLI 1.2 restructured the products into four categories. 3. PLI 1.2 is the only round of the scheme that offers any production-linked incentive, as the earlier rounds offered none. Which of the statements given above is/are correct?

  1. PLI 1.1 (second round) was launched in January 2025, while the PLI 1.2 (third round) scheme was launched in November 2025.
  2. PLI 1.1 retained the same five product categories as the original 2021 scheme, whereas PLI 1.2 restructured the products into four categories.
  3. PLI 1.2 is the only round of the scheme that offers any production-linked incentive, as the earlier rounds offered none.
  • 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 specialty steel grades: 1. CRGO steel is a variety of electrical steel used mainly in the cores of transformers. 2. Super alloys and titanium alloys covered under specialty steel find applications in the defence, space and nuclear sectors. 3. India is fully self-sufficient in CRGO electrical steel and is a net exporter of it to Japan and the Republic of Korea. Which of the statements given above is/are correct?

  1. CRGO steel is a variety of electrical steel used mainly in the cores of transformers.
  2. Super alloys and titanium alloys covered under specialty steel find applications in the defence, space and nuclear sectors.
  3. India is fully self-sufficient in CRGO electrical steel and is a net exporter of it to Japan and the Republic of Korea.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q9. The goal of achieving 100% indigenous fulfilment of India's demand for electrical steel and special steels/alloys for strategic applications is envisaged primarily under which one of the following?

  • A. National Steel Policy 2017
  • B. National Steel Policy 2005
  • C. National Manufacturing Policy 2011
  • D. Steel Import Monitoring System 2019

Q10. With reference to the PLI scheme framework and the steel sector, consider the following statements: 1. Steel is one of the 14 sectors covered under the Production Linked Incentive (PLI) scheme. 2. The National Steel Policy 2017 targets a crude steel capacity of 300 million tonnes by 2030-31. 3. The total outlay announced for PLI schemes across all 14 sectors is about ₹1.97 lakh crore. 4. India is currently the largest producer of crude steel in the world. Which of the statements given above are correct?

  1. Steel is one of the 14 sectors covered under the Production Linked Incentive (PLI) scheme.
  2. The National Steel Policy 2017 targets a crude steel capacity of 300 million tonnes by 2030-31.
  3. The total outlay announced for PLI schemes across all 14 sectors is about ₹1.97 lakh crore.
  4. India is currently the largest producer of crude steel in the world.
  • A. 1, 2 and 3
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q11. With reference to the institutional set-up of the steel sector, consider the following statements: 1. Steel Authority of India Limited (SAIL) is a public sector undertaking under the administrative control of the Ministry of Steel. 2. Rashtriya Ispat Nigam Limited (RINL) is a steel-manufacturing PSU under the Ministry of Steel. 3. NMDC and MOIL are among the PSUs under the Ministry of Steel. 4. SAIL and RINL together account for the entire (100%) crude steel production of India. Which of the statements given above are correct?

  1. Steel Authority of India Limited (SAIL) is a public sector undertaking under the administrative control of the Ministry of Steel.
  2. Rashtriya Ispat Nigam Limited (RINL) is a steel-manufacturing PSU under the Ministry of Steel.
  3. NMDC and MOIL are among the PSUs under the Ministry of Steel.
  4. SAIL and RINL together account for the entire (100%) crude steel production of India.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4