UPSC Prelims Practice Questions — India Advances Critical Mineral Security: 58 Companies Eligible for Recycling Scheme

Q1. The National Critical Mineral Mission (NCMM) was approved with a total outlay of Rs.34,300 crore. Of this, how much is the Central Government's own budgetary support (as distinct from expected PSU investment)?

  • A. Rs.16,300 crore
  • B. Rs.18,000 crore
  • C. Rs.34,300 crore
  • D. Rs.1,500 crore

Q2. Consider the following statements comparing the National Critical Mineral Mission (NCMM) and its sub-component, the Critical Mineral Recycling Incentive Scheme: 1. The NCMM has a larger total outlay than the Critical Mineral Recycling Incentive Scheme. 2. Unlike the recycling scheme, the entire NCMM outlay is funded solely through Central Government budgetary support. 3. Both the NCMM and the Recycling Incentive Scheme are implemented by the Ministry of Mines. Which of the statements given above is/are correct?

  1. The NCMM has a larger total outlay than the Critical Mineral Recycling Incentive Scheme.
  2. Unlike the recycling scheme, the entire NCMM outlay is funded solely through Central Government budgetary support.
  3. Both the NCMM and the Recycling Incentive Scheme are implemented by the Ministry of Mines.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. Which one of the following statements correctly describes the institutional/statutory basis of the Rs.1,500 crore Incentive Scheme for Promotion of Critical Mineral Recycling?

  • A. It is a standalone programme with no link to any parent mission.
  • B. It is a sub-component of the National Critical Mineral Mission, cleared by the Union Cabinet and implemented by the Ministry of Mines.
  • C. It was created solely by a dedicated Act of Parliament exclusively for lithium-ion battery recycling.
  • D. It is administered entirely by NITI Aayog as a think-tank initiative.

Q4. Under the Critical Mineral Recycling Incentive Scheme, the term 'Opex subsidy' most precisely refers to which of the following?

  • A. An incentive paid on incremental sales achieved over the base year (FY 2025-26)
  • B. A 20% subsidy on plant, machinery, equipment and associated utilities
  • C. A subsidy on the import of critical mineral ores and concentrates
  • D. A one-time capital grant for acquisition of land for the recycling plant

Q5. With reference to India's 2023 list of critical minerals prepared by the Ministry of Mines, which one of the following best describes the basis on which a mineral is classified as 'critical'?

  • A. A mineral essential to key economic sectors and national security whose supply is exposed to the risk of disruption
  • B. A mineral that occurs only within rare-earth ore deposits
  • C. A radioactive mineral reserved exclusively for atomic energy use
  • D. A mineral available in such abundance domestically that it requires no imports

Q6. Under the Mines and Minerals (Development and Regulation) Amendment Act, 2023, how many critical and strategic minerals were listed in Part D of the First Schedule for exclusive auction by the Central Government?

  • A. 24
  • B. 30
  • C. 12
  • D. 6

Q7. Under the MMDR Amendment Act, 2023, the mining leases and composite licences for the 24 minerals listed in Part D of the First Schedule are auctioned by which of the following?

  • A. The Central Government
  • B. The respective State Governments in whose territory the mineral occurs
  • C. The Geological Survey of India
  • D. Coal India Limited

Q8. The committee that recommended India's first comprehensive list of critical minerals (including rare earths) in 2023 was constituted by which of the following?

  • A. Ministry of Mines
  • B. Ministry of Coal
  • C. Ministry of Science and Technology
  • D. Department of Atomic Energy

Q9. India is a member of the Mineral Security Partnership (MSP). Which one of the following countries leads/initiated the MSP?

  • A. United States
  • B. Australia
  • C. Japan
  • D. India

Q10. The Incentive Scheme for Promotion of Critical Mineral Recycling — which supports recovery of critical minerals from secondary sources such as e-waste and spent lithium-ion batteries — is implemented by which of the following?

  • A. Ministry of Mines
  • B. Ministry of Environment, Forest and Climate Change
  • C. Ministry of Electronics and Information Technology (MeitY)
  • D. Ministry of Heavy Industries