UPSC Prelims Practice Questions — President of India Smt. Droupadi Murmu and Prime Minister Shri Narendra Modi lays Foundation Stone of Bharat Coal Gasification & Chemicals Limited (BCGCL) Coal-to-Ammonium Nitrate Project at Lakhanpur, Odisha

Q1. With reference to Bharat Coal Gasification & Chemicals Limited (BCGCL), consider the following statements: 1. It is a joint venture in which Coal India Limited and Bharat Heavy Electricals Limited hold equal (50:50) equity stakes. 2. Unlike its parent Coal India Limited, which is under the Ministry of Coal, BCGCL operates as a Central Public Sector Enterprise under the Ministry of Chemicals and Fertilizers. 3. The land for its flagship Lakhanpur project has been leased from Mahanadi Coalfields Limited, a subsidiary of Coal India Limited. Which of the statements given above is/are correct?

1. It is a joint venture in which Coal India Limited and Bharat Heavy Electricals Limited hold equal (50:50) equity stakes.
2. Unlike its parent Coal India Limited, which is under the Ministry of Coal, BCGCL operates as a Central Public Sector Enterprise under the Ministry of Chemicals and Fertilizers.
3. The land for its flagship Lakhanpur project has been leased from Mahanadi Coalfields Limited, a subsidiary of Coal India Limited.

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

Q2. Bharat Coal Gasification & Chemicals Limited (BCGCL), the joint venture company executing India's first commercial-scale coal-to-ammonium nitrate project at Lakhanpur, functions under the administrative control of which one of the following Union Ministries?

• A. Ministry of Heavy Industries
• B. Ministry of Chemicals and Fertilizers
• C. Ministry of Coal
• D. Ministry of Petroleum and Natural Gas

Q3. Under the Financial Incentive Scheme for Promotion of Coal/Lignite Gasification Projects (2024), which one of the following categories has the largest financial outlay?

• A. Category I — Government PSUs / JVs
• B. Category II — Private Sector and Government PSUs
• C. Category III — Demonstration projects and small-scale plants
• D. Category IV — Coal Bed Methane and Underground Coal Gasification pilots

Q4. The Financial Incentive Scheme for Promotion of Coal/Lignite Gasification Projects (2024), with an outlay of Rs 8,500 crore, is implemented by which one of the following ministries of the Government of India?

• A. Ministry of Petroleum and Natural Gas
• B. Ministry of Power
• C. Ministry of Coal
• D. Ministry of New and Renewable Energy

Q5. Surface Coal Gasification (SCG), as promoted under the Ministry of Coal's incentive scheme, produces a 'synthesis gas' (syngas) whose two principal constituent gases are subsequently used as feedstock for chemicals such as ammonia and methanol. Which one of the following pairs correctly identifies these two principal constituents of syngas?

• A. Carbon monoxide and Hydrogen
• B. Methane and Hydrogen
• C. Carbon dioxide and Nitrogen
• D. Ethylene and Hydrogen

Q6. With reference to the regulation of ammonium nitrate in India, which one of the following correctly describes the Petroleum and Explosives Safety Organisation (PESO)?

• A. An autonomous statutory regulator established under the Environment (Protection) Act, 1986 functioning under the Ministry of Environment, Forest and Climate Change
• B. A subordinate office under the Department for Promotion of Industry and Internal Trade (DPIIT) administering the Explosives Act, 1884
• C. An attached office of the Ministry of Home Affairs administering the Arms Act, 1959 and related hazardous-materials regulations
• D. A wing of the Ministry of Coal responsible for safety in coal-based chemical and gasification projects

Q7. With reference to ammonium nitrate in the Indian context, consider the following statements: 1. It is a major ingredient in the manufacture of bulk explosives used in open-cast coal mining. 2. It can be used as a nitrogenous fertiliser in agriculture. 3. It has been notified as an 'explosive' under the Explosives Act, 1884. 4. Its manufacture, storage and import in India are regulated by the Atomic Energy Regulatory Board. Which of the statements given above are correct?

1. It is a major ingredient in the manufacture of bulk explosives used in open-cast coal mining.
2. It can be used as a nitrogenous fertiliser in agriculture.
3. It has been notified as an 'explosive' under the Explosives Act, 1884.
4. Its manufacture, storage and import in India are regulated by the Atomic Energy Regulatory Board.

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

Q8. Among the following Gondwana coalfields of India, which one has the largest proven coal reserves and lies under the administrative control of the same company that owns the Ib Valley coalfield at Lakhanpur?

• A. Jharia coalfield
• B. Raniganj coalfield
• C. Talcher coalfield
• D. Korba coalfield

Q9. Which of the following is the largest coal-producing subsidiary of Coal India Limited, having become the first CIL subsidiary to cross the 200 million tonne annual production mark?

• A. South Eastern Coalfields Limited (SECL)
• B. Mahanadi Coalfields Limited (MCL)
• C. Northern Coalfields Limited (NCL)
• D. Central Coalfields Limited (CCL)

Q10. How many subsidiaries does Coal India Limited, a Maharatna PSU under the Ministry of Coal, currently have (including its consultancy arm)?

• A. Six
• B. Seven
• C. Eight
• D. Nine

Q11. Which one of the following rounds of India's commercial coal mine auctions was the first to specifically offer coal mines identified for their Underground Coal Gasification (UCG) potential?

• A. 11th Round
• B. 12th Round
• C. 13th Round
• D. 14th Round

Q12. With reference to India's coal sector reforms and the policy framework promoting coal gasification, consider the following statements: 1. Under the Financial Incentive Scheme for Promotion of Coal/Lignite Gasification Projects approved by the Union Cabinet in January 2024, Category-I projects of Government PSUs are eligible for a lump-sum grant of ₹1,350 crore or 15% of capex per project, whichever is lower. 2. The policy on commercial coal block auctions provides a 100% rebate in revenue share for the coal used for gasification, provided at least 25% of the total coal produced from the block is so used. 3. India has set a national target of gasifying 100 Million Tonnes of coal by 2030. Which of the statements given above is/are correct?

1. Under the Financial Incentive Scheme for Promotion of Coal/Lignite Gasification Projects approved by the Union Cabinet in January 2024, Category-I projects of Government PSUs are eligible for a lump-sum grant of ₹1,350 crore or 15% of capex per project, whichever is lower.
2. The policy on commercial coal block auctions provides a 100% rebate in revenue share for the coal used for gasification, provided at least 25% of the total coal produced from the block is so used.
3. India has set a national target of gasifying 100 Million Tonnes of coal by 2030.

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

Q13. In the context of the BCGCL Lakhanpur project and India's coal gasification mission, the term 'syngas' refers to which one of the following?

• A. A gaseous mixture predominantly composed of carbon monoxide and hydrogen
• B. A gaseous mixture predominantly composed of nitrogen and hydrogen used directly as ammonia synthesis feed
• C. A gaseous mixture predominantly composed of methane and ethane recovered from coal seams
• D. A liquefied gaseous fuel derived from washing high-ash coal with naphtha

Q14. The Scheme for Promotion of Surface Coal/Lignite Gasification Projects, under which BCGCL's Lakhanpur Coal-to-Ammonium Nitrate plant has been sanctioned a financial incentive, is administered exclusively by which one of the following Union Ministries?

• A. Ministry of Coal
• B. Ministry of Chemicals and Fertilizers
• C. Ministry of Petroleum and Natural Gas
• D. Ministry of Heavy Industries