UPSC Prelims Practice Questions — REVAMPING OF SHIPBUILDING INDUSTRY

Q1. The four-pillar ₹69,725 crore comprehensive package to revamp India's shipbuilding sector is operationalised as the nodal ministry by which one of the following?

  • A. Ministry of Ports, Shipping and Waterways
  • B. Ministry of Defence, which alone handles all ship construction in India
  • C. Ministry of Heavy Industries
  • D. Ministry of Commerce and Industry

Q2. Among the following components of the ₹69,725 crore shipbuilding and maritime package, which one has the largest financial corpus/outlay?

  • A. Maritime Development Fund
  • B. Shipbuilding Financial Assistance Scheme (SBFAS)
  • C. Shipbuilding Development Scheme (SbDS)
  • D. Shipbreaking Credit Note

Q3. Consider the following component–outlay pairs under the shipbuilding package: 1. Shipbuilding Financial Assistance Scheme (SBFAS) — ₹24,736 crore 2. Maritime Investment Fund — ₹20,000 crore 3. Interest Incentivization Fund — ₹5,000 crore 4. Shipbuilding Development Scheme (SbDS) — ₹4,001 crore Which of the above pairs is/are correctly matched?

  1. Shipbuilding Financial Assistance Scheme (SBFAS) — ₹24,736 crore
  2. Maritime Investment Fund — ₹20,000 crore
  3. Interest Incentivization Fund — ₹5,000 crore
  4. Shipbuilding Development Scheme (SbDS) — ₹4,001 crore
  • A. 1, 2 and 3 only
  • B. 1, 3 and 4 only
  • C. 2 and 4 only
  • D. 1, 2, 3 and 4

Q4. Consider the following statements comparing the new Shipbuilding Financial Assistance Scheme (SBFAS) with the earlier Shipbuilding Financial Assistance Policy (SBFAP): 1. SBFAP's financial assistance rate declined over its policy period, whereas SBFAS provides assistance in the range of 15–25% per vessel. 2. SBFAP's contract window ran up to 2026, while SBFAS is valid up to 31 March 2036. 3. Both SBFAP and SBFAS are administered by the Ministry of Heavy Industries. Which of the statements given above is/are correct?

  1. SBFAP's financial assistance rate declined over its policy period, whereas SBFAS provides assistance in the range of 15–25% per vessel.
  2. SBFAP's contract window ran up to 2026, while SBFAS is valid up to 31 March 2036.
  3. Both SBFAP and SBFAS are administered by the Ministry of Heavy Industries.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. The Sagarmala Programme, administered under the Ministry of Ports, Shipping and Waterways, is best described as a programme that primarily:

  • A. promotes port-led development and reduces logistics cost for EXIM and domestic trade with minimal infrastructure investment
  • B. provides direct financial subsidy to Indian shipyards for the construction of vessels
  • C. regulates seafarer welfare, certification of Merchant Navy officers and prevention of marine pollution
  • D. creates a sovereign fund for long-term financing of the maritime industry

Q6. Consider the following statements about the erstwhile Shipbuilding Financial Assistance Policy (SBFAP): 1. It was approved by the Government in 2015 for shipbuilding contracts signed between 1 April 2016 and 31 March 2026. 2. Under SBFAP, the rate of financial assistance was kept uniform for the entire policy period. 3. It was introduced to promote 'Make in India' in the maritime sector. Which of the statements given above is/are correct?

  1. It was approved by the Government in 2015 for shipbuilding contracts signed between 1 April 2016 and 31 March 2026.
  2. Under SBFAP, the rate of financial assistance was kept uniform for the entire policy period.
  3. It was introduced to promote 'Make in India' in the maritime sector.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. The Shipbuilding Financial Assistance Scheme (SBFAS) approved in 2025 is primarily an extension/successor of which one of the following earlier measures?

  • A. Shipbuilding Financial Assistance Policy (SBFAP)
  • B. Maritime Agenda 2010–2020
  • C. Merchant Shipping Act, 1958
  • D. Sagarmala Programme

Q8. The comprehensive ₹69,725 crore package targeting 4.5 million Gross Tonnage of capacity and about 30 lakh jobs was approved by the Union Cabinet in which year?

  • A. 2025
  • B. 2023
  • C. 2024
  • D. 2026

Q9. In the ₹25,000 crore Maritime Development Fund announced in the Union Budget 2025-26, what is the proposed participation share of the Government of India?

  • A. 49%
  • B. 51%
  • C. 100% (fund is entirely government-financed)
  • D. 26%

Q10. Within the Ministry of Ports, Shipping and Waterways, which body is responsible for augmentation of shipping tonnage, ensuring safety of life at sea, and coordination with the International Maritime Organisation?

  • A. Directorate General of Shipping
  • B. Directorate General of Lighthouses and Lightships
  • C. Inland Waterways Authority of India
  • D. Tariff Authority for Major Ports

Q11. Which one of the following is India's largest shipbuilding and ship-repair facility?

  • A. Cochin Shipyard Limited
  • B. Mazagon Dock Shipbuilders Limited
  • C. Hindustan Shipyard Limited
  • D. Garden Reach Shipbuilders and Engineers Limited