Directions: Read the passage given below and answer the questions that follow by choosing the correct/most appropriate options:
The decision to involve India is a sign that Nepal is reposing its faith in India to complete the project. If completed, it is expected to provide India the much-needed leverage in future hydropower cooperation. The NHPC has initiated a preliminary engagement of the site _______ an investment of over ₹18,000 crores. It has also signed an MoU with Power Trading Corporation Limited, India for the sale of power. India is already involved in the Mahakali Treaty (6,480 MW), the Upper Karnali Project (900 MW), and the Arun Three projects (900 MW) in western and eastern Nepal, respectively. This will also help India minimize the geopolitical influence of China and firm its presence in Nepal, considering that the West Seti Hydroelectric Project was a major Chinese venture under the Belt and Road Initiative. In a tilt towards India, Nepal’s Prime Minister Sher Bahadur Deuba said, “We failed to invest in this project... Since India is reluctant to purchase energy produced by Chinese companies in Nepal, we will talk with PM Modi about the engagement of Indian developers.”
It is ironic that despite its huge hydropower potential, Nepal experiences power shortages during peak times, increasing its dependence on India to bridge the shortfall. With an estimated potential of 83,000 MW, Nepal’s electricity exports to India are expected to increase foreign exchange and address the power shortage. It is estimated that if the hydropower potential is fully harnessed, Nepal can generate revenue to the tune of ₹310 billion in 2030 and ₹1,069 billion per year in 2045 by exporting electricity to India. Similarly, India’s severe deficit in coal-based thermal power plants in recent years, which meet 70% of India’s electricity demand, has compelled the Government to arrange supplies through coal imports, accelerating the search for better alternatives. Given the growing energy demand, the West Seti Hydroelectric Project can provide an added alternative and viable way to address power deficits.