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Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q144: When preparing the Detailed Project Report (DPR) for a Common Facility Centre (CFC) under the MSE-CDP guidelines, which of the following costs is generally NOT eligible for the Government of India (GoI) Grant calculation?

A
Cost of Plant and Machinery for the CFC.
B
Cost of Land for the CFC.
C
Cost of Laboratory and Testing Equipment.
D
Preliminary and Pre-operative expenses (within limits).
✅ Correct Answer: B
The Rule: Under the MSE-CDP (and most GoI infrastructure schemes), the Cost of Land is strictly excluded from the grant calculation.
Funding Structure:
GoI Grant: Covers the cost of Plant, Machinery, Building construction, and technical infrastructure.
State/SPV Contribution: The State Government or the SPV must provide the land.
The value of the land is often counted towards the State's share or SPV's share, but the GoI does not pay for land acquisition.
Logic: This ensures the local stakeholders have "skin in the game" and prevents the misuse of funds for real estate speculation.