MCQ

PLI Scheme for Specialty Steel — Third Round (PLI 1.2) MCQ - Practice Questions with Answers

Solve 5 PLI Scheme for Specialty Steel — Third Round (PLI 1.2) questions for RAS/RPSC preparation.

Practice questions

Q1Consider the following statements about the third round, PLI 1.2: 1. It was launched on 4 November 2025. 2. It covers 22 product sub-categories under 4 product categories. 3. Its incentive rates range from 4% to 15% for 5 years beginning in FY 2025-26, with disbursement beginning in FY 2026-27. Which of the statements given above are correct?

A 1 and 2 only

B 2 and 3 only

C 1, 2 and 3

D 1 and 3 only

Explanation

All three statements reproduce explicit official facts. The Ministry launched PLI 1.2 on 4 November 2025; the round covers 22 sub-categories under 4 product categories; and incentives range from 4% to 15% for 5 years from FY 2025-26, while disbursement starts in FY 2026-27. Hence 1, 2 and 3 are correct.

Q2Which one of the following statements about the product coverage of PLI 1.2 is incorrect?

A It covers 22 product sub-categories under 4 product categories.

B Steel Grades for Strategic Sector is one of its product categories.

C Commercial Grades are divided into Category 1 and Category 2.

D Bulk commodity steel is listed as a separate fifth product category.

Explanation

PLI 1.2 has 4 product categories: Steel Grades for Strategic Sector, Commercial Grades—Category 1, Commercial Grades—Category 2, and Coated and Wire Products. Bulk commodity steel is not a fifth category; the scheme instead seeks to move production toward higher-value specialty steel.

Q3Which option correctly distinguishes the first two rounds of the Production Linked Incentive Scheme for Specialty Steel?

A PLI 1.0: ₹27,106 crore committed investment; PLI 1.1: about ₹17,000 crore expected investment

B PLI 1.0: about ₹17,000 crore expected investment; PLI 1.1: ₹27,106 crore committed investment

C PLI 1.0 and PLI 1.1 each had ₹11,887 crore of committed investment.

D PLI 1.0 had no investment commitment, while PLI 1.1 had ₹6,322 crore.

Explanation

The official February 2026 release reports ₹27,106 crore of committed investment under PLI 1.0. It separately states that PLI 1.1, launched on 6 January 2025, is expected to attract about ₹17,000 crore. ₹11,887 crore pertains to the third round, while ₹6,322 crore is the parent scheme's outlay.

Q4Which set correctly states the agreements signed under the third round, PLI 1.2, on 9 February 2026?

A 42 projects of 25 companies; ₹11,887 crore committed investment

B 85 projects of 55 companies; ₹17,000 crore committed investment

C 55 projects of 85 companies; ₹11,887 crore committed investment

D 85 projects of 55 companies; ₹11,887 crore committed investment

Explanation

On 9 February 2026, the Ministry of Steel signed memoranda of understanding for 85 projects proposed by 55 companies under PLI 1.2. Those participating companies committed ₹11,887 crore of investment. Thus all three elements—85 projects, 55 companies, and ₹11,887 crore—must appear together.

Q5What is the total approved outlay of the Production Linked Incentive Scheme for Specialty Steel?

A ₹3,222 crore

B ₹6,322 crore

C ₹11,887 crore

D ₹17,000 crore

Explanation

The Union Cabinet approved the Production Linked Incentive Scheme for Specialty Steel in July 2021 with an overall budget of ₹6,322 crore. The other figures describe investments linked to particular rounds and therefore cannot replace the scheme's approved outlay.

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