ibps-so 2016 · Question 349 of 394

The technical o cer has recommended the third quotation, since the depth of the well and the delivery head together call for a pump set of that rating and no smaller machine will lift the required discharge. The borrower now wishes to know how much of the cost he will have to nd himself, since the balance will be met by the subsidy admitted on pump sets under the scheme in force, which the branch will claim on his behalf and adjust against the loan account when it is received. The eld o cer has to record in his appraisal both the rate at which the subsidy is admitted and the money ceiling above which it will not be paid however costly the machine, because the loan and the margin are both worked out on the balance of the cost. The subsidy available on a pump set of 10 hp is

1. A25 per cent of the cost, limited to ₹10,000
2. B50 per cent of the cost, limited to ₹5,000
3. C100 per cent of the cost, limited to ₹15,000
4. D50 per cent of the cost, limited to ₹10,000Correct
5. EOne-third of the cost, limited to ₹20,000