Current Affairs: Passage of the Week - 08 September 2025 | Current Affairs & General Knowledge - CLAT PDF Download

Directions: Read the passage carefully and answer the questions that follow.
Adani Power on Saturday said it has inked a pact with Bhutan's state-owned utility Druk Green Power to set up a 570MW hydro project entailing an investment of Rs 6,000 crore, in the Himalayan Kingdom.
As per the pact, Adani Power and Druk Green Power Corp Ltd (DGPC), will initiate the peaking run-of-river Wangchhu hydroelectric project on a BOOT (Build, Own, Operate, Transfer) model.
A power purchase agreement and a concession agreement were signed in this regard in the presence of Prime Minister of Bhutan, Dasho Tshering Tobgay and Gautam Adani, Chairman, Adani Group, a company statement said.
Adani Power, Druk Green Power To Set Up 570 MW Hydro Power Project In BhutanThe Wangchu project will see an investment of about Rs 60 billion in setting up the renewable energy power plant and related infrastructure.
The agreement was signed in the presence of Bhutan PM Dasho Tshering Tobgay and Gautam Adani
Adani Power on Saturday said it has inked a pact with Bhutan's state-owned utility Druk Green Power to set up a 570MW hydro project entailing an investment of Rs 6,000 crore, in the Himalayan Kingdom.
As per the pact, Adani Power and Druk Green Power Corp Ltd (DGPC), will initiate the peaking run-of-river Wangchhu hydroelectric project on a BOOT (Build, Own, Operate, Transfer) model.
A power purchase agreement and a concession agreement were signed in this regard in the presence of Prime Minister of Bhutan, Dasho Tshering Tobgay and Gautam Adani, Chairman, Adani Group, a company statement said.
The Wangchhu project will see an investment of about Rs 6,000 crore in setting up the power plant and related infrastructures.
With the detailed project report already completed, construction work is expected to begin by the first half of 2026, and the completion is targeted within five years of groundbreaking.
"The Wangchhu hydroelectric project will critically meet Bhutan's peak winter demand, when hydro power generation is low. During the summer months, it would export power to India," said SB Khyalia, CEO, Adani Power.
The Wangchhu is the first hydroelectric project to be taken up under an MoU signed in May 2025 between Adani Group and DGPC for jointly developing 5,000 MW of hydropower in Bhutan.
Adani Group and DGPC are engaged in further discussions for future projects under this strategic partnership.
Adani Power is the largest private thermal power producer in India.
DGPC is the sole generation utility of Bhutan with a current generation portfolio of a little over 2,500 MW and growing fast with Bhutan's aspirations to achieve 25,000 MW in generation capacity by 2040.
Druk Holding & Investments, the commercial arm of the Royal Government of Bhutan, is DGPC's shareholder.
Established in 2008 to take a lead role in developing Bhutan's hydropower resources, it has recently diversified beyond hydropower into tapping solar resources.
[Excerpt from NDTV "Wangchhu Hydroelectric Project" Dated 08/09/25]

Q1: The Wangchhu project’s run-of-river design, as opposed to large dam reservoirs, primarily ensures which of the following?
(a) Increased energy output due to higher storage capacity
(b) Reduced ecological disruption while producing hydropower
(c) Complete independence from river flow variations
(d) Faster construction timelines regardless of terrain

View Answer  

Ans: (b)
Sol: Run-of-river schemes typically have lower ecological footprints as they do not involve massive reservoirs, unlike large dams.

Q2: If the BOOT model were not applied to the Wangchhu project, which possible concern might arise for Bhutan?
(a) Increased control over private investment
(b) Delayed transfer of ownership to the government
(c) Difficulty in attracting foreign capital for large projects
(d) Complete loss of seasonal power surplus to India

View Answer  

Ans: (c)
Sol: The BOOT model balances private investment with eventual national ownership. Without it, Bhutan may struggle to attract foreign/private investment while safeguarding national interests.

Q3: The export of surplus summer electricity from Bhutan to India, as planned in the Wangchhu project, is most likely to:
(a) Undermine Bhutan’s energy security in the long term
(b) Create seasonal interdependence benefiting both nations
(c) Reduce India’s incentive to invest in solar energy
(d) Increase fossil fuel consumption in Bhutan during winter

View Answer  

Ans: (b)
Sol: Bhutan balances seasonal demand by exporting surplus in summer and meeting peak winter demand locally, fostering mutual energy interdependence.

Q4: The 5,000 MW hydropower MoU between Adani Power and DGPC, with Wangchhu as the first project, indicates which broader trend?
(a) Bhutan’s shift away from renewable energy targets
(b) India’s strategic use of cross-border hydropower to diversify its energy mix
(c) Dependence on fossil fuels to stabilize seasonal power fluctuations
(d) Bhutan’s declining interest in international energy collaboration

View Answer  

Ans: (b)
Sol: The collaboration reflects India’s focus on importing clean, renewable energy from Bhutan to diversify its energy mix and reduce fossil fuel dependence.

Q5: Considering Bhutan’s target of 25,000 MW by 2040, the Wangchhu project’s contribution is best seen as:
(a) A marginal initiative with negligible long-term significance
(b) A pilot project testing the viability of cross-border solar integration
(c) A stepping stone in scaling hydropower capacity through foreign partnerships
(d) A deviation from Bhutan’s renewable energy strategy

View Answer  

Ans: (c)
Sol: Wangchhu, though only 570 MW, sets a precedent under the 5,000 MW MoU and contributes toward Bhutan’s long-term 25,000 MW capacity target through strategic foreign collaborations.