UPSC Prelims Practice Questions — Cabinet approves National Investment Policy for Urea-2026 for Atmanirbhar Bharat (NIPU-2026)

Q1. With reference to the National Investment Policy for Urea-2026 for Atmanirbhar Bharat (NIPU-2026), consider the following: 1. It is a proposal of the Department of Fertilizers. 2. It replaces the lapsed New Investment Policy (NIP)-2012. 3. It was framed to correct design flaws such as opaque costing under NIP-2012. 4. It shifts new urea production to a coal-based feedstock. Which of the above is/are correctly identified?

  1. It is a proposal of the Department of Fertilizers.
  2. It replaces the lapsed New Investment Policy (NIP)-2012.
  3. It was framed to correct design flaws such as opaque costing under NIP-2012.
  4. It shifts new urea production to a coal-based feedstock.
  • A. 1, 2 and 3
  • B. 1, 3 and 4
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q2. Which one of the following bodies approved the National Investment Policy for Urea-2026 (NIPU-2026) in July 2026?

  • A. Union Cabinet (full Cabinet)
  • B. Cabinet Committee on Economic Affairs
  • C. Cabinet Committee on Security
  • D. NITI Aayog Governing Council

Q3. With reference to a comparison between NIP-2012 and NIPU-2026, consider the following statements: 1. Unlike NIP-2012, NIPU-2026 introduces a defined Return on Equity band to make fresh investment viable. 2. NIPU-2026 is estimated to save over Rs.250 crore per plant compared to NIP-2012. 3. The new-investment period under NIP-2012 expired in October 2015. Which of the statements given above is/are correct?

  1. Unlike NIP-2012, NIPU-2026 introduces a defined Return on Equity band to make fresh investment viable.
  2. NIPU-2026 is estimated to save over Rs.250 crore per plant compared to NIP-2012.
  3. The new-investment period under NIP-2012 expired in October 2015.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. Under NIP-2012, six new urea units were set up. Consider the following identifications of these units: 1. Ramagundam (RFCL) — set up as a PSU joint venture. 2. Gorakhpur (HURL) — set up as a PSU joint venture. 3. Gadepan-III (CFCL) — set up by a private company. 4. Panagarh (Matix) — set up as a PSU joint venture. Which of the above is/are NOT correctly matched?

  1. Ramagundam (RFCL) — set up as a PSU joint venture.
  2. Gorakhpur (HURL) — set up as a PSU joint venture.
  3. Gadepan-III (CFCL) — set up by a private company.
  4. Panagarh (Matix) — set up as a PSU joint venture.
  • A. 1 only
  • B. 2 only
  • C. 3 only
  • D. 4 only

Q5. Under NIPU-2026, what is the ceiling (upper limit) of the Return on Equity (RoE) band offered to urea investors?

  • A. 12%
  • B. 14%
  • C. 16%
  • D. 18%

Q6. How many urea manufacturing units are currently operational in India, as referenced in the context of NIPU-2026?

  • A. 25 units
  • B. 30 units
  • C. 33 units
  • D. 6 units

Q7. With reference to India's current urea sector, consider the following: 1. India has 33 operational urea manufacturing units. 2. India's installed/reassessed urea capacity is about 269.42 LMT. 3. India still imports urea to meet its assessed demand. 4. India is currently a net exporter of urea. Which of the above is/are correctly identified?

  1. India has 33 operational urea manufacturing units.
  2. India's installed/reassessed urea capacity is about 269.42 LMT.
  3. India still imports urea to meet its assessed demand.
  4. India is currently a net exporter of urea.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q8. Which one of the following is the primary feedstock targeted for the new urea manufacturing units to be set up under NIPU-2026?

  • A. Coal
  • B. Natural gas
  • C. Naphtha
  • D. Fuel oil

Q9. The New Urea Policy (NUP)-2015, notified by the Department of Fertilizers, was framed for how many existing gas-based urea units?

  • A. 20 units
  • B. 25 units
  • C. 30 units
  • D. 33 units

Q10. With reference to the linkage of NIPU-2026 with self-reliance in agri-inputs, consider the following: 1. It is positioned under the Atmanirbhar Bharat self-reliance branding. 2. It aims to reduce India's dependence on imported urea. 3. It is expected to help cut the fertilizer subsidy/forex outgo. 4. It replaces the Direct Benefit Transfer (DBT) system for fertilizer subsidy. Which of the above is/are correctly identified?

  1. It is positioned under the Atmanirbhar Bharat self-reliance branding.
  2. It aims to reduce India's dependence on imported urea.
  3. It is expected to help cut the fertilizer subsidy/forex outgo.
  4. It replaces the Direct Benefit Transfer (DBT) system for fertilizer subsidy.
  • A. 1, 2 and 3
  • B. 2, 3 and 4
  • C. 1 and 4 only
  • D. 1, 2, 3 and 4

Q11. Who chairs the Cabinet Committee on Economic Affairs (CCEA), the body that approved NIPU-2026?

  • A. Union Finance Minister
  • B. Cabinet Secretary
  • C. President of India
  • D. Prime Minister