UPSC Prelims Practice Questions — Infrastructure Financing in India: Trends, Institutions, and Innovations

Q1. Who is the chairperson of the National Bank for Financing Infrastructure and Development (NaBFID)?

• A. K. V. Kamath
• B. Uday Kotak
• C. Shaktikanta Das
• D. Rajiv Kumar

Q2. In the context of NaBFID's mandate, what does 'non-recourse infrastructure financing' mean?

• A. Lending where repayment is secured only by the cash flows and assets of the specific project, with no claim on the sponsor's other assets
• B. Lending that carries a sovereign guarantee from the Government of India for the full loan amount
• C. Concessional lending that need not be repaid if the project becomes commercially unviable
• D. Lending extended only against the personal guarantee of the project promoters

Q3. Which one of the following best describes 'asset monetisation' as operationalised under the National Monetisation Pipeline?

• A. Unlocking value from operating brownfield public assets by transferring usage rights to private players for a defined period, while ownership stays with the government
• B. The outright sale and permanent transfer of ownership of all public infrastructure assets to private investors
• C. The exclusive use of disinvestment of government equity in public sector enterprises
• D. The acquisition of distressed private infrastructure assets by the government for revival

Q4. Which one of the following correctly characterises the first National Monetisation Pipeline (NMP 1.0)?

• A. Launched in 2021 with a monetisation target of about ₹6 lakh crore over FY22–FY25
• B. Launched in 2021 with a monetisation target of ₹16.72 lakh crore over FY26–FY30
• C. Launched in 2019 with an investment projection of ₹111 lakh crore over FY20–FY25
• D. Launched in 2025 with a monetisation target of ₹6 lakh crore over FY26–FY30

Q5. Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) in India are regulated by which authority?

• A. Securities and Exchange Board of India (SEBI)
• B. Reserve Bank of India (RBI)
• C. Insurance Regulatory and Development Authority of India (IRDAI)
• D. Ministry of Corporate Affairs (MCA)

Q6. Which one of the following was India's first Real Estate Investment Trust (REIT)?

• A. Embassy Office Parks REIT
• B. Mindspace Business Parks REIT
• C. Brookfield India Real Estate Trust
• D. Nexus Select Trust

Q7. Under which regulatory classification are the funds managed under the National Investment and Infrastructure Fund (NIIF) platform registered with SEBI?

• A. Category II Alternative Investment Fund (AIF)
• B. Category I Alternative Investment Fund (AIF)
• C. Category III Alternative Investment Fund (AIF)
• D. Open-ended Mutual Fund

Q8. How many funds are currently managed under the National Investment and Infrastructure Fund (NIIF) platform?

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

Q9. In which Union Budget were the Infrastructure Risk Guarantee Fund (IRGF) and City Economic Regions proposed?

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

Q10. With reference to the National Infrastructure Pipeline (NIP) for FY2020-25, consider the following sectors: 1. Energy 2. Roads 3. Defence equipment production 4. Urban infrastructure Which of the above is/are correctly identified as sectors holding a major share of the projected NIP investment?

1. Energy
2. Roads
3. Defence equipment production
4. Urban infrastructure

• A. 1 and 2 only
• B. 3 and 4 only
• C. 1, 2 and 4
• D. 1, 2, 3 and 4

Q11. With reference to the evolution of Development Finance Institutions (DFIs) in India, consider the following statements: 1. IFCI, established in 1948, was India's first development finance institution. 2. IDFC, set up in 1997 as an infrastructure financier, was later converted into a bank. 3. NaBFID, set up under the NaBFID Act, 2021, is the fourth All India Financial Institution in India. Which of the statements given above is/are correct?

1. IFCI, established in 1948, was India's first development finance institution.
2. IDFC, set up in 1997 as an infrastructure financier, was later converted into a bank.
3. NaBFID, set up under the NaBFID Act, 2021, is the fourth All India Financial Institution in India.

• A. 1 only
• B. 1 and 2 only
• C. 2 and 3 only
• D. 1, 2 and 3

Q12. What is the public capital expenditure outlay proposed in the Union Budget 2026-27?

• A. ₹12.2 lakh crore
• B. ₹11.21 lakh crore
• C. ₹11.11 lakh crore
• D. ₹2.63 lakh crore