UPSC Prelims Practice Questions — Pre-bid conference organised by Ministry of Heavy Industries (MHI) for prospective bidders under ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet’ receives positive industry response
Q1. Under the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet', the ₹6,450 crore component of the ₹7,280 crore outlay is best described as which one of the following?
- A. A sales-linked incentive disbursed over five years, tied to actual REPM production/sales
- B. A one-time capital subsidy for setting up integrated manufacturing facilities
- C. An interest-subvention on loans raised by selected beneficiaries
- D. A viability-gap grant reimbursing the cost of imported rare-earth oxides
Q2. With reference to the funding classification of the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet', consider the following: it is a fully centrally-funded Central Sector Scheme administered by the Ministry of Heavy Industries, whose ₹7,280 crore outlay was cleared by the Union Cabinet. Which one of the following statements is correct?
- A. It is a Central Sector Scheme funded entirely by the Union Government under the Ministry of Heavy Industries
- B. It is a Centrally Sponsored Scheme with costs shared between the Centre and States
- C. It is a component of the Production Linked Incentive (PLI) scheme notified by DPIIT
- D. It is a scheme of the Ministry of Mines implemented through the National Critical Mineral Mission
Q3. With reference to the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet', consider the following identifications:
1. Nodal ministry — Ministry of Heavy Industries
2. Bidding portal — Government e-Marketplace (GeM)
3. Bid evaluation basis — Least Cost System (LCS)
4. Maximum number of beneficiary firms — five
Which of the above is/are correctly identified?
- Nodal ministry — Ministry of Heavy Industries
- Bidding portal — Government e-Marketplace (GeM)
- Bid evaluation basis — Least Cost System (LCS)
- Maximum number of beneficiary firms — five
- A. 1, 3 and 4
- B. 1 and 2 only
- C. 2, 3 and 4
- D. 1 and 4 only
Q4. The scheme mandates the establishment of 'integrated' REPM manufacturing capacity. In this context, 'integrated' most precisely means that a beneficiary facility must:
- A. Undertake the full value chain from rare-earth oxides through metal-making, alloying and sintering to finished magnets
- B. Only assemble and coat imported finished magnet blocks for domestic sale
- C. Exclusively mine and beneficiate monazite ore without any downstream processing
- D. Solely operate as a trading entity importing magnets and reselling them to EV makers
Q5. With reference to sintered NdFeB rare earth permanent magnets, consider the following statements:
1. The Nd-Fe-B magnet, developed in 1984, is a stronger permanent magnet than earlier magnet families.
2. Pure Nd-Fe-B magnets, without any additive, retain full magnetic strength at the 150–200°C operating range of EV motors.
3. Dysprosium is added as an alloying element to enhance the magnet's resistance to demagnetization.
Which of the statements given above is/are correct?
- The Nd-Fe-B magnet, developed in 1984, is a stronger permanent magnet than earlier magnet families.
- Pure Nd-Fe-B magnets, without any additive, retain full magnetic strength at the 150–200°C operating range of EV motors.
- Dysprosium is added as an alloying element to enhance the magnet's resistance to demagnetization.
- A. 1 and 3 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q6. Which one of the following is recognised as the strongest commercially available type of permanent magnet, and the type targeted by India's REPM manufacturing scheme?
- A. Sintered Neodymium-Iron-Boron (NdFeB) magnet
- B. Samarium-Cobalt (SmCo) magnet
- C. Alnico magnet
- D. Ferrite (ceramic) magnet
Q7. During 2022-23 to 2024-25, which single country was the largest source of India's rare earth permanent magnet imports, prompting concerns over supply-chain vulnerability?
- A. China
- B. Japan
- C. United States
- D. Vietnam
Q8. With reference to India's rare earth permanent magnet import dependence, consider the following statements:
1. India sourced the bulk of its permanent magnet imports from China during 2022-23 to 2024-25.
2. India's REPM consumption is projected to double by 2030.
3. India is entirely self-sufficient in the high-value heavy rare earths dysprosium and terbium.
4. Rare earth magnets are dual-use, with critical defence applications.
Which of the above is/are NOT correct?
- India sourced the bulk of its permanent magnet imports from China during 2022-23 to 2024-25.
- India's REPM consumption is projected to double by 2030.
- India is entirely self-sufficient in the high-value heavy rare earths dysprosium and terbium.
- Rare earth magnets are dual-use, with critical defence applications.
- A. 3 only
- B. 1 and 2
- C. 3 and 4
- D. 2 only
Q9. Within India's critical minerals architecture, which one of the following is the designated lead public sector vehicle for acquiring critical mineral assets abroad?
- A. Khanij Bidesh India Limited (KABIL)
- B. IREL (India) Limited
- C. Geological Survey of India (GSI)
- D. NMDC Limited
Q10. With reference to the bidding process under the REPM manufacturing scheme, consider the following statements:
1. Bidding is conducted online through a two-stage (two-cover) process.
2. Bids are evaluated under the Least Cost System (LCS).
3. Bidding is conducted through the Central Public Procurement (CPP) Portal.
4. Up to eight firms are to be selected as beneficiaries.
Which of the above is/are NOT correct?
- Bidding is conducted online through a two-stage (two-cover) process.
- Bids are evaluated under the Least Cost System (LCS).
- Bidding is conducted through the Central Public Procurement (CPP) Portal.
- Up to eight firms are to be selected as beneficiaries.
- A. 4 only
- B. 1 and 4
- C. 2 and 3
- D. 3 only
Q11. With reference to India's rare earth reserves and the concerned public sector undertaking, consider the following statements:
1. IREL (India) Limited, formerly Indian Rare Earths Limited, has functioned under the Department of Atomic Energy since 1963.
2. India holds the world's third largest rare earth resources.
3. IREL was newly incorporated in 2025 as a public sector undertaking under the Ministry of Heavy Industries.
Which of the statements given above is/are correct?
- IREL (India) Limited, formerly Indian Rare Earths Limited, has functioned under the Department of Atomic Energy since 1963.
- India holds the world's third largest rare earth resources.
- IREL was newly incorporated in 2025 as a public sector undertaking under the Ministry of Heavy Industries.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3