UPSC Essentials | Daily subject-wise quiz : Economy MCQs on Sustainable aviation fuel, oil imports, PLFS and more (Week 77)

1. It is a biofuel that is produced from sustainable feedstocks.

2. It is cheaper and requires low production costs.

3. The National Biofuel Coordination Committee (NBCC) has set the initial indicative targets for blending of SAF with jet fuel from 2027.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

Explanation

— The government is likely to come up with mandates for blending of sustainable aviation fuel (SAF) with aviation turbine fuel (ATF) for domestic flights only after the global mandates for international flights kick in from 2027.

— SAF is a biofuel that is produced from sustainable feedstocks and has chemistry similar to conventional ATF or jet fuel, which is derived from crude oil. Hence, statement 1 is correct.

— This means that existing aircraft engines can easily use the SAF-ATF blend. For instance, Airbus claims that all its aircraft are capable of flying on a maximum 50 per cent blend of SAF and conventional fuel.

— Last year, the Ministry of Petroleum and Natural Gas (MoPNG) appointed a SAF committee, which made recommendations to the cabinet. According to persons with firsthand knowledge of the topic, the team advocated a 1% SAF blending rule beginning in 2025 and gradually increasing it over succeeding years.

— SAF is incredibly expensive due to high technological and manufacturing costs. Hence, statement 2 is not correct.

— The year 2027 will be a watershed moment in the global adoption of SAF, when the mandatory phase of the International Civil Aviation Organization’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) begins.

— India, while not a participant in the voluntary phases of CORSIA, will have to comply with the mandatory phase starting 2027. In line with the CORSIA mandate, the National Biofuel Coordination Committee (NBCC) has set the initial indicative targets for blending SAF with jet fuel from 2027 onwards, starting with international flights. The indicative targets are: 1 per cent blending in 2027 and 2 per cent in 2028. Hence, statement 3 is correct.

Therefore, option (b) is the correct answer.

QUESTION 2

Consider the following statements:

Statement 1: China is affecting India’s ability to promote its domestic manufacturing under the Production Linked Incentive (PLI) scheme.

Statement 2: The Chinese Government has aggressively slashed prices in the clean energy sector such as solar energy.

Which one of the following is correct in respect of the above statements?

(a) Both Statement 1 and Statement 2 are correct and Statement 2 is the correct explanation for Statement 1.

(b) Both Statement 1 and Statement 2 are correct and Statement 2 is not the correct explanation for Statement 1.

(c) Statement 1 is correct but Statement 2 is incorrect.

(d) Statement 1 is incorrect but Statement 2 is correct.

Explanation

— India’s clean energy manufacturing is feeling the impact of Chinese predatory pricing, which is affecting the country’s ability to promote its ambitious domestic manufacturing under the Production Linked Incentive (PLI) scheme. Hence, statement 1 is correct.

— “The Chinese have aggressively slashed prices in the clean energy sector such as solar energy, posing a challenge for domestic manufacturing growth. Even anti-dumping duties are insufficient. Solutions such as collaboration with the West are being explored, as several Western countries, including Germany, are facing similar challenges,” the official said. Hence, statement 2 is correct.

— China’s impact on the local clean energy industry has been a source of concern for some time. According to the Economic Survey 2023-24, China’s manufacturing trade imbalance has been increasing since 2019, owing to poor domestic demand and rising industrial capacity.

— The Production Linked Incentive (PLI) Scheme intends to create an ecosystem in India for the production of high efficiency solar PV modules, reducing reliance on imports in the renewable energy sector.

The objectives of the PLI scheme are:

— To build up solar PV manufacturing capacity of high-efficiency modules.

— To bring cutting-edge technology to India to manufacture high-efficiency modules.

— To promote the setting up of integrated plants for better quality control and competitiveness.

— To develop an ecosystem for sourcing local materials in solar manufacturing.

— Employment generation and technological self-sufficiency.

Both Statement 1 and Statement 2 are correct and Statement 2 is the correct explanation for Statement 1.

Therefore, option (a) is the correct answer.

(Other Source: mnre.gov.in)

QUESTION 3

Which of the following statements is not correct? (UPSC-CDS (II) – 2024)

(a) SAGAR-SETU is a mobile app, which aims to improve the Ease of Doing Business.

(b) Harit Sagar aims at achieving the Zero Carbon Emission Goal.

(c) Sagar Mathan is a mission launched by the Ministry of Ports, Shipping and Waterways, Government of India, to increase fish production.

(d) Costa Serena is the first international cruise liner in India.

Note: The aspirants should also refer to the questions from other competitive exams conducted by the UPSC which might be useful for UPSC–CSE.

Explanation

Therefore, option (c) is the correct answer.

(Other Source: pib.gov.in)

QUESTION 4

With reference to the oil imports, consider the following statements:

1. India’s edible oil imports hit an all-time high in 2023.

2. Sunflower has emerged as the country’s largest imported oil.

3. The palm oil is mainly imported from the Philippines and Thailand.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(c) 2 and 3 only

(d) 1 only

Explanation

— Recently, the Indian government made two important decisions to protect the interests of oil-based farmers in India.

— On September 13, it hiked the basic customs duty (BCD) on imported crude palm, soyabean, and sunflower oil from zero to 20%, and that on their refined oils from 12.5% to 32.5%.

— The effective import duty increase for crude oils is from 5.5% to 27.5% (after adding a 5% ‘agriculture infrastructure and development cess’ and a 10% ‘social welfare’ surcharge on the BCD with the cess). On refined oils, which attract only the 10% surcharge on the BCD, the increase in effective import duty is from 13.75% to 35.75%.

— India’s edible oil imports reached an all-time high of 16.5 million tonnes (mt) in the fiscal year ended October 2023. Imports for the first ten months of this oil year were 13.5 mt, 3.6% lower than the 14 mt recorded from November to August 2022-23. Hence, statement 1 is correct.

— Sunflower has emerged as the country’s second largest imported oil after palm, while relegating soyabean to the third spot. Hence, statement 2 is not correct.

India edible oil imports in lakh tonnes.

— Sunflower oil imports totalled 3.1 million tonnes between November and August 2023-24, with the majority coming from Russia (1.5 million tonnes), Romania (0.6 million tonnes), Ukraine (0.5 million tonnes), and Argentina (0.4 million tonnes). Soybean oil is generally imported from Argentina and Brazil, whereas palm oil comes from Indonesia and Malaysia. Hence, statement 3 is not correct.

Therefore, option (d) is the correct answer.

QUESTION 5

Which of the following has not increased as per the annual report of the Periodic Labour Force Survey (PLFS) 2023-24?

1. Labour Force Participation Rate (Female)

2. Worker Population Ratio (Urban)

3. Unemployment Rate (Rural)

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3 only

(c) 3 only

(d) 1 and 2 only

Explanation

Key Findings of PLFS, Annual Report 2023- 2024

— Labour Force Participation Rate (LFPR): It is defined as the percentage of persons in the labour force (i.e. working or seeking or available for work) in the population.

— In rural areas, LFPR rose from 50.7% in 2017-18 to 63.7% in 2023-24, while in urban areas it rose from 47.6% to 52.0%. The LFPR for men in India went from 75.8% in 2017-18 to 78.8% in 2023-24, while the LFPR for women increased from 23.3% to 41.7%.

— Worker Population Ratio (WPR): It is defined as the percentage of employed persons in the population.

— In rural areas, WPR increased from 48.1% in 2017-18 to 62.1% in 2023-24 while for urban areas it increased from 43.9% to 49.4%. WPR for male in India increased from 71.2% in 2017-18 to 76.3% in 2023-24 and the corresponding increase in WPR for females was from 22.0% to 40.3%.

— Unemployment Rate (UR): It is defined as the percentage of persons unemployed among the persons in the labour force.

— In rural areas, UR decreased from 5.3% in 2017-18 to 2.5% in 2023-24 while for urban areas it decreased from 7.7% to 5.1%. UR for male in India decreased from 6.1% in 2017-18 to 3.2% in 2023-24 and corresponding decrease for females was from 5.6% to 3.2%.

— LFPR for persons of age 15 years and above

— In rural areas, LFPR increased from 48.9% in 2017-18 to 58.9% in 2023-24 while for urban areas it increased from 47.1% to 50.8%. LFPR for male in India increased from 75.1% in 2017-18 to 77.5% in 2023-24 and corresponding increase for females was from 21.1% to 35.6%.

Therefore, option (c) is the correct answer.

(Other Source: pib.gov.in)

Previous Daily Subject-Wise-Quiz

Daily subject-wise quiz — Polity and Governance (Week 77)

Daily Subject-wise quiz — History, Culture, and Social Issues (Week 77)

Daily subject-wise quiz — Environment, Geography, Science and Technology (Week 77)

Daily subject-wise quiz — Economy (Week 76)

Daily subject-wise quiz – International Relations (Week 76)

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