Question 1

India solely provides financial grants to Bhutan as unconditional foreign aid without tangible economic returns.

Accepted Answer

Hydropower projects like Punatsangchhu-II are strategically financed with a mix of grants and loans (30:70 ratio), and Bhutan exports surplus power to India under negotiated tariffs, which directly benefits India's low-carbon energy grid.

Question 2

All Indo-Bhutan hydropower projects are strictly developed under the inter-governmental model.

Accepted Answer

While Punatsangchhu-II is an inter-governmental project, the framework has evolved. For example, the 600 MW Kholongchhu project is the first to be executed as a 50:50 Joint Venture between Indian and Bhutanese public sector undertakings.

Question 3

Consider the following statements regarding India-Bhutan cooperation and the Punatsangchhu-II project: 
1. The Punatsangchhu-II project is a large reservoir-based hydroelectric facility located on the Sankosh River.
2. The Piprahwa relics, exhibited in Bhutan in 2025, were originally excavated in 1898 from an ancient stupa in Uttar Pradesh.
3. The 2006 Agreement on Cooperation in Hydroelectric Power provides the official bilateral framework for current energy initiatives.
How many of the above statements are correct?

Accepted Answer

(b) Only two — Statement 1 is incorrect because the Punatsangchhu-II project utilizes 'run-of-the-river' technology, not a large reservoir, specifically to minimize environmental and displacement impacts. Statement 2 is correct; the relics were excavated by W.C. Peppe in the Siddharthnagar district of UP. Statement 3 is correct; the 2006 agreement established the modern framework for these projects.

Question 4

Match the following India-Bhutan Hydroelectric Projects (List I) with their distinguishing features (List II):
List I:
A. Chukha HEP
B. Kholongchhu HEP
C. Punatsangchhu-II HEP
D. Jaldhaka HEP

List II:
1. First 50:50 Joint Venture model between India and Bhutan
2. 1,020 MW run-of-the-river project inaugurated in late 2025
3. Earliest Indo-Bhutan hydropower cooperation formalized in 1961
4. First major hydropower project commissioned in the 1980s under the bilateral partnership

Accepted Answer

(a) A-4, B-1, C-2, D-3 — Chukha HEP (A) is the flagship project commissioned in the 1980s (4). Kholongchhu (B) is the first 50:50 Joint Venture formalized in 2020 (1). Punatsangchhu-II (C) is the newly inaugurated 1,020 MW project (2). Jaldhaka (D) was the very first agreement signed in 1961 (3).

Question 5

Assertion (A): The completion of the Punatsangchhu-II Hydroelectric Project is crucial for India's transition to renewable energy.
Reason (R): The 1,020 MW of electricity generated by the project is entirely consumed within Bhutan, allowing India to redirect its own coal resources elsewhere.
Select the correct answer from the codes given below:

Accepted Answer

(c) A is true but R is false — The Assertion (A) is true because Bhutanese hydropower is a key component of India's low-carbon energy strategy. The Reason (R) is false because the electricity is not entirely consumed within Bhutan; a massive portion of the surplus power is exported to India under long-term power purchase agreements.

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