UPSC Prelims Practice Questions — POLICY CHANGES TO EXPAND INDIGENOUS FLEET

Q1. With reference to the Merchant Shipping Act, 2025, consider the following statements regarding what the Act provides: 1. It repeals and replaces the Merchant Shipping Act, 1958. 2. It permits vessels wholly or partly owned by Overseas Citizens of India (OCIs) to be registered as Indian vessels. 3. It makes registration in India mandatory for every vessel wholly owned by an Overseas Citizen of India. 4. It allows a foreign vessel chartered by an Indian person to be registered as an Indian vessel where ownership is to be transferred to the charterer after a specified period. Which of the statements given above are correctly identified?

  1. It repeals and replaces the Merchant Shipping Act, 1958.
  2. It permits vessels wholly or partly owned by Overseas Citizens of India (OCIs) to be registered as Indian vessels.
  3. It makes registration in India mandatory for every vessel wholly owned by an Overseas Citizen of India.
  4. It allows a foreign vessel chartered by an Indian person to be registered as an Indian vessel where ownership is to be transferred to the charterer after a specified period.
  • A. 1 and 3
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q2. The Merchant Shipping Act, 2025, which replaces the 561-section Merchant Shipping Act, 1958, is organised into how many Parts?

  • A. 12
  • B. 16
  • C. 20
  • D. 24

Q3. As per the Right of First Refusal (RoFR) hierarchy revised by the Ministry of Ports, Shipping and Waterways in September 2023, into how many priority categories are vessels ranked for chartering through a tender process?

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

Q4. In the tender-based chartering of vessels, the operation of the Right of First Refusal (RoFR) ceases at which point?

  • A. As soon as an eligible bidder, in the order of priority, matches the lowest quoted bid (L1)
  • B. As soon as any Indian-flagged vessel submits a bid, regardless of the L1 price
  • C. Only after all five priority categories have submitted bids
  • D. As soon as the tendering authority fixes a reserve price above the L1 bid

Q5. The Maritime Development Fund (MDF) has a total corpus of ₹25,000 crore. What is the corpus of its Maritime Investment Fund component (in which the Government of India holds up to 49% participation)?

  • A. ₹5,000 crore
  • B. ₹15,000 crore
  • C. ₹20,000 crore
  • D. ₹24,736 crore

Q6. The setting up of the Maritime Development Fund and the revival of the Shipbuilding Financial Assistance Scheme were announced in which Union Budget?

  • A. Union Budget 2023-24
  • B. Union Budget 2024-25
  • C. Union Budget 2025-26
  • D. Union Budget 2026-27

Q7. In the Union Budget 2025-26 package for shipbuilding, what outlay was earmarked for the Shipbuilding Capability Development Centres (SCDC)?

  • A. ₹610 crore
  • B. ₹1,040 crore
  • C. ₹1,200 crore
  • D. ₹6,100 crore

Q8. Among the following components of the Union Budget 2025-26 shipbuilding package, which one received the largest budgetary allocation?

  • A. R&D and innovation in ship technology
  • B. Shipbuilding Capability Development Centres (SCDC)
  • C. Capital and operational assistance to private design/training centres
  • D. Upgradation, modernisation and automation of existing shipyards

Q9. Consider the following statements about the ministry and administration overseeing India's fleet-expansion policy: 1. The Ministry of Ports, Shipping and Waterways was earlier designated the Ministry of Shipping. 2. The Directorate General of Shipping, headquartered in Mumbai, functions under this Ministry. 3. The Directorate General of Shipping has been designated the National Authority for Recycling of Ships under the Recycling of Ships Act, 2019. Which of the statements given above are correct?

  1. The Ministry of Ports, Shipping and Waterways was earlier designated the Ministry of Shipping.
  2. The Directorate General of Shipping, headquartered in Mumbai, functions under this Ministry.
  3. The Directorate General of Shipping has been designated the National Authority for Recycling of Ships under the Recycling of Ships Act, 2019.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q10. Consider the following bodies/laws: 1. Directorate General of Shipping 2. Directorate General of Lighthouses and Lightships (DGLL) 3. Coastal Shipping Act, 2025 4. Airports Authority of India Which of the above is/are correctly identified as functioning under, or administered by, the Ministry of Ports, Shipping and Waterways?

  1. Directorate General of Shipping
  2. Directorate General of Lighthouses and Lightships (DGLL)
  3. Coastal Shipping Act, 2025
  4. Airports Authority of India
  • A. 1, 2 and 3
  • B. 1 and 4
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q11. Under the original Shipbuilding Financial Assistance Policy (providing 20% financial assistance to Indian shipyards, tapering by 3% every three years), the assistance was available exclusively for shipbuilding contracts signed between which years?

  • A. 2015 and 2025
  • B. 2016 and 2026
  • C. 2016 and 2036
  • D. 2020 and 2030

Q12. In the carriage of India's EXIM (foreign) trade, which one of the following carries the largest share?

  • A. Indian-flagged vessels
  • B. Foreign-flagged vessels
  • C. Indian-owned but foreign-built vessels
  • D. IFSCA-owned vessels