UPSC Prelims Practice Questions — Aatmanirbhar Bharat: MoD inks Rs 53,866.50 crore contracts with GRSE & GSL for 8 Next Generation Corvettes for Indian Navy

Q1. With reference to Acceptance of Necessity (AoN) in India's capital defence acquisitions, consider the following statements: Which of the statements given above is/are correct?

  1. AoN is the first formal approval in a capital acquisition case, and it comes before bids are sought from vendors.
  2. Once AoN is granted, the vendor is treated as finalised, and only price negotiation remains.
  3. The cost indicated at the AoN stage is a preliminary estimate, so the contract value finally signed can differ from it.
  • A. 1 and 3 only
  • B. 2 and 3 only
  • C. 1 only
  • D. 1, 2 and 3

Q2. Consider the following facts: In June 2022, the Defence Acquisition Council accorded Acceptance of Necessity for Next Generation Corvettes at an estimated cost of about Rs 36,000 crore, to be built on an in-house Indian Navy design. In 2025, one public sector shipyard emerged as the lowest bidder in a competitive process. In 2026, contracts worth about Rs 53,866 crore were signed for eight ships, five with that yard and three with another public sector yard. Which of the following inferences can validly be drawn from the above?

  1. The rise from the AoN estimate to the contract value shows that the competitive process failed to discipline prices.
  2. Because the order was split between two yards, the second yard did not take part in the competitive process.
  3. All eight ships will be built to a design that originated with the user service rather than with either shipyard.
  • A. 1 only
  • B. 2 and 3 only
  • C. 3 only
  • D. 1 and 2 only

Q3. With reference to the procurement categories under the Defence Acquisition Procedure 2020, consider the following statements: Which of the statements given above are correct?

  1. Buy (Global) is the most preferred category, because it gives the armed forces quickest access to state-of-the-art equipment.
  2. Under Buy (Indian), the equipment need not be of indigenous design, but a minimum level of indigenous content is still required.
  3. Under Buy & Make (Indian), an Indian vendor may first supply an initial quantity in fully formed state and then manufacture the rest in India through transfer of technology.
  • A. 1, 2 and 3
  • B. 1 and 3 only
  • C. 1 and 2 only
  • D. 2 and 3 only

Q4. Consider the following assertion: 'Small multi-mission surface combatants such as the Next Generation Corvettes strengthen India's role as a net security provider in the Indian Ocean Region.' Which of the following statements support the above assertion?

  1. Protecting the sea lanes that carry the region's trade is central to India's SAGAR vision for the Indian Ocean.
  2. A larger number of capable hulls allows a sustained maritime presence and surveillance over a wider area.
  3. Being nuclear-powered, these corvettes can remain on station anywhere in the Indian Ocean indefinitely without refuelling.
  • A. 2 and 3 only
  • B. 1 and 2 only
  • C. 1 only
  • D. 1, 2 and 3

Q5. With reference to policy tools used to build India's domestic defence and warship-building base, consider the following statements: Which of the statements given above is/are correct?

  1. When a warship order is placed on nomination, a public sector shipyard receives the contract without competing with other yards on price.
  2. Competitive selection among public sector shipyards can bring price discipline even if no private shipyard wins the contract.
  3. A Positive Indigenisation List does not ban imports at once; the embargo on each listed item applies only after the timeline stated against it.
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 1 and 3 only
  • D. 2 only