Question 1

Consider the following statements regarding India's power sector:

1. Nuclear power is classified as a non-conventional source of energy.
2. Power generation from agricultural and residential waste is considered a conventional source.
3. The improvement in India's energy sector is attributed to enhancements in Availability, Accessibility, and Affordability.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The text explicitly lists nuclear power as a conventional power generating source, alongside coal, lignite, natural gas, and oil. Statement 2 is incorrect. The text identifies agricultural and residential waste as potential non-conventional sources, along with wind and solar. Statement 3 is correct. The text states that the situation improved due to improvement in three A’s in the energy sector: Availability, Accessibility, and Affordability. Therefore, only one statement is correct.

Question 2

Consider the following two statements:

Statement-I: A country's electricity consumption is a key indicator used to determine its level of development.

Statement-II: India's electricity industry is characterized by a diverse mix of generating sources, including both conventional sources like coal and non-conventional sources like solar power.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Both Statement-I and Statement-II are correct but Statement-II is not the correct explanation for Statement-I.. Statement-I is correct. Per capita electricity consumption is a widely used proxy for a country's level of economic development and standard of living. Higher levels of industrial production, commercial activity, infrastructure development, and household access to modern amenities are hallmarks of a developed economy, and all are highly dependent on electricity. Therefore, higher consumption correlates strongly with higher development.

Statement-II is also correct. India's power sector has a diversified generation mix. It relies heavily on conventional sources like coal, which forms the largest share of its installed capacity. Concurrently, there is a significant and rapidly growing share of non-conventional renewable energy sources, particularly solar and wind power, alongside contributions from hydro and nuclear power.

However, Statement-II does not explain Statement-I. The diversity of India's energy sources (Statement-II) is a supply-side strategy to ensure energy security, manage costs, and meet environmental commitments. It explains *how* India is trying to meet its electricity demand. It does not explain the fundamental reason *why* high electricity consumption is an indicator of development (Statement-I), which is rooted in the energy-intensive nature of modern economic activities and improved living standards. Thus, both statements are correct, but Statement-II is not the correct explanation for Statement-I.

Question 3

Consider the following statements based on the provided data for India's power supply:

1. The official data on energy requirements and supply is compiled and published by the Ministry of Power.
2. In the period 2023-24, the energy supplied was exactly equal to the energy requirement, resulting in zero deficit.
3. The peak demand not met was lower in the 2024-25 period (upto Dec 2023) compared to the entire 2023-24 period.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The source for the data table is explicitly mentioned as 'CEA (Central Electricity Authority)', not the Ministry of Power. Statement 2 is incorrect. The table for 2023-24 shows an 'Energy not Supplied' of 4,112 MU, which corresponds to a deficit of 0.3%. Statement 3 is correct. The table shows that the 'Peak Demand not Met' for 2023-24 was 3,340 MW, while for 2024-25 (upto Dec 2023) it was only 2 MW, which is significantly lower. Therefore, only one statement is correct.

Question 4

Consider the following statements regarding India's power sector:
1. Renewable energy sources account for nearly half of India's total annual energy generation.
2. Projections for 2031-32 indicate that coal and lignite will be the single largest source of India's total installed power capacity.
3. India has successfully transitioned from being a power-deficit to a power-surplus nation over the last decade.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. It conflates installed capacity with actual energy generation. While renewable energy's share in installed capacity is high, its contribution to total annual energy generation is significantly lower. For example, in 2022-23, energy generation from non-fossil fuels was approximately 22.8%, not nearly half. Statement 2 is incorrect. Projections for the installed capacity mix by 2031-32 show Solar PV becoming the largest source at approximately 40%, surpassing coal and lignite, which are projected to be the second largest at around 29%. Statement 3 is correct. Through substantial additions to its generation capacity in recent years, India has successfully moved from a state of power deficit to being a power-surplus nation. Since only statement 3 is correct, the correct option is 'Only one'.

Question 5

Consider the following statements regarding rural electrification schemes in India:

Statement-I: The Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) was launched with the primary objective of strengthening and augmenting sub-transmission and distribution infrastructure in rural areas.

Statement-II: The Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) was launched with the objective of achieving universal household electrification by providing electricity connections to all unelectrified households in rural areas and all poor households in urban areas.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Both Statement-I and Statement-II are incorrect. Both statements are incorrect because they swap the objectives of the two schemes. Statement-I is incorrect. The objective of strengthening sub-transmission and distribution infrastructure belongs to the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), not SAUBHAGYA. The primary objective of SAUBHAGYA was to provide electricity connections to households. Statement-II is incorrect. The objective of providing electricity connections to all unelectrified rural households and poor urban households belongs to the SAUBHAGYA scheme, not DDUGJY. DDUGJY's focus was on village electrification and infrastructure development.

Question 6

With reference to the recent developments in India's power sector, consider the following statements:
1. The gap between peak energy demand and peak supply has widened since 2013-14 due to a rapid increase in demand.
2. As of the end of 2024, India's installed capacity from non-fossil fuel sources has surpassed the installed capacity from fossil fuel sources.
3. The implementation of the Revamped Distribution Sector Scheme (RDSS) has been associated with a reduction in the distribution losses of DISCOMs.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. This is a conceptual direction trap. While demand has increased, the gap has narrowed, not widened. The text states the difference between peak demand and peak supply was 4.5% in 2013-14 and has reduced to about 1.4%. Statement 2 is incorrect. As of 31 December 2024, the total fossil fuel installed capacity was 2,44,377 MW, while the total non-fossil fuel installed capacity was 2,17,625 MW. Therefore, fossil fuel capacity is still greater than non-fossil fuel capacity. Statement 3 is correct. The text explicitly states that under the RDSS, 'Distribution losses of DISCOMs were reduced from 21.5% to 16.5%'. Thus, only one statement is correct.

Question 7

Consider the following statements regarding sources of energy:
1. Firewood and dried dung are classified as commercial sources of energy.
2. Electricity is generally classified as a conventional source of energy.
3. Non-conventional energy sources are inherently non-polluting and entirely free from negative environmental impacts.

Accepted Answer

Only one. Statement 1 is incorrect. Firewood and dried dung are traditional fuels often gathered for personal use and not typically traded in formal markets, classifying them as non-commercial sources of energy. Statement 2 is correct. Electricity has been a primary and long-established form of energy for industrial and domestic use, placing it within the category of conventional energy sources. Statement 3 is incorrect. This is a false generalization. While often cleaner than fossil fuels, non-conventional sources can have significant environmental impacts. For instance, large-scale hydroelectric power projects can cause deforestation and disrupt ecosystems, and the production of solar panels is resource-intensive. Since only statement 2 is correct, the correct option is 'a'.

Question 8

With reference to the energy sector in India, consider the following statements:
1. The production costs of non-conventional energy sources are generally lower than those of conventional sources, contributing to their widespread adoption.
2. The Gas Authority of India Limited (GAIL) was established with the primary mandate for the exploration and production of natural gas across India.
3. As per the National Electricity Plan for 2031-32, solar and wind power combined are projected to constitute more than half of India's total installed electricity generation capacity.

Accepted Answer

Only one. Statement 1 is incorrect. While the operational costs of non-conventional energy sources are low, their initial capital investment and production costs are significantly high. For instance, setting up large-scale solar farms requires substantial expenditure on photovoltaic (PV) panels and land, and wind energy projects involve high costs for manufacturing and installing turbines. This high upfront cost is a challenge, not a facilitator, for their adoption.

Statement 2 is incorrect. The Gas Authority of India Limited (GAIL), established in 1984, was primarily tasked with the transportation, processing, and marketing of natural gas. Its core function is in the midstream sector (pipelines), not the upstream activities of exploration and production, which are primarily undertaken by companies like ONGC and Oil India Ltd.

Statement 3 is correct. According to the National Electricity Plan, the total projected installed capacity for 2031-32 is 900,422 MW. The planned capacity for solar is 364,566 MW and for wind is 121,895 MW. Their combined capacity is 486,461 MW. The calculation for their share is (486,461 MW / 900,422 MW) * 100 ≈ 54%. Since 54% is more than half (50%), this statement is correct.

Thus, only one statement (Statement 3) is correct.

Question 9

With reference to the International Solar Alliance (ISA), consider the following statements:

1. The ISA was jointly initiated by India and the United Kingdom during the COP26 summit.
2. All member countries of the ISA, irrespective of their geographical location, possess equal voting rights.
3. The headquarters of the ISA is located in Gurugram, India.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is incorrect. The International Solar Alliance (ISA) was launched jointly by India and France during the 21st Conference of the Parties (COP21) in Paris in 2015. The initiative launched by India and the UK at the COP26 summit was the 'Green Grids Initiative – One Sun One World One Grid'.

Statement 2 is correct. The ISA Framework Agreement was amended to open its membership to all member states of the United Nations. After this amendment, all member countries have the same voting rights.

Statement 3 is correct. The headquarters of the ISA is located in Gurugram, Haryana, India.

Since two statements (2 and 3) are correct, the correct option is (b).

Question 10

Consider the following statements:

Statement-I: The National Policy on Biofuels, 2018, provides for a viability gap funding scheme and additional tax incentives primarily for First Generation (1G) biofuels.

Statement-II: The policy aims to make advanced biofuels economically competitive by offering a higher purchase price for them compared to basic biofuels.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is incorrect but Statement-II is correct. Statement-I is incorrect. The National Policy on Biofuels, 2018, indicates a viability gap funding scheme and additional tax incentives with a thrust on 'Advanced Biofuels' (Second and Third Generation), specifically mentioning 2G ethanol Bio-refineries, not 'basic biofuels' (First Generation). Statement-II is correct. The policy supports advanced biofuels through measures like a higher purchase price as compared to 1G biofuels, which is intended to make their production more economically viable and competitive.

Question 11

Consider the following statements regarding renewable energy in India:

1. The transition from competitive bidding to a feed-in tariff system for wind energy has led to aggressive bidding by developers, impacting profitability.
2. The National Wind Solar Hybrid Policy, 2018, was formulated to encourage projects that leverage the complementary nature of solar and wind energy generation.
3. A key reason for the non-viability of past tidal power projects in India has been the high capital cost per megawatt.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is incorrect. The text states that the challenge in the wind energy sector arose from the transition *from* feed-in tariffs *to* competitive bidding, not the other way around. This shift to competitive bidding led to aggressive bidding and lower tariffs. Statement 2 is correct. The text explicitly mentions that large grid-connected Wind-Solar hybrid projects have been encouraged under the National Wind Solar Hybrid Policy, 2018, to leverage the complementary nature of the two energy sources. Statement 3 is correct. The text notes that previous experiences with tidal power plants in West Bengal and Gujarat revealed high costs per megawatt, which led to the plants being shut down.

Question 12

Consider the following statements regarding the responsibilities of various ministries:

1. The Ministry of Power is responsible for managing rural electricity programmes.
2. The Ministry of Coal has the responsibility for the pricing of coal through government-owned corporations.
3. The Ministry of Power controls the Union Government's equity stake in Singareni Collieries Company.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is correct. The Ministry of Power is tasked with managing rural electricity programmes. Statement 2 is correct. The Ministry of Coal is responsible for producing, supplying, distributing, and pricing coal. Statement 3 is incorrect. The Ministry of Coal, not the Ministry of Power, controls the Union Government's 49 per cent equity stake in Singareni Collieries Company.

Question 13

Consider the following Central Public Sector Undertakings (CPSUs) and their administrative control:

1. National Thermal Power Corporation Limited is under the Ministry of Power.
2. Neyveli Lignite Corporation is under the Ministry of Power.
3. Power Finance Corporation is under the Ministry of Power.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is correct. National Thermal Power Corporation Limited is a CPSU under the Ministry of Power. Statement 2 is incorrect. The Ministry of Coal is responsible for Neyveli Lignite Corporation, which deals with lignite deposits. Statement 3 is correct. Power Finance Corporation is listed as a CPSU under the Ministry of Power.

Question 14

Consider the following statements regarding energy exchanges in India:
1. The Indian Energy Exchange (IEX) is regulated by the Petroleum and Natural Gas Regulatory Board (PNGRB).
2. The Indian Gas Exchange (IGX) is regulated by the Central Electricity Regulatory Commission (CERC).
3. The Indian Energy Exchange (IEX) provides a trading platform for physical delivery of electricity, Renewable Energy Certificates, and Energy Saving Certificates.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The Indian Energy Exchange (IEX), which is a power/electricity trading platform, is regulated by the Central Electricity Regulatory Commission (CERC), not the PNGRB. Statement 2 is incorrect. The Indian Gas Exchange (IGX), which is a natural gas trading platform, is regulated by the Petroleum and Natural Gas Regulatory Board (PNGRB), not the CERC. Statement 3 is correct. The IEX is described as India's first and largest energy exchange, providing a nationwide, automated trading platform for the physical delivery of electricity, Renewable Energy Certificates, and Energy Saving Certificates.

Question 15

Consider the following statements:
Statement-I: The Revamped Distribution Sector Scheme (RDSS) aims to improve the operational efficiencies and financial sustainability of Distribution Companies (DISCOMs).
Statement-II: A key objective of the RDSS is to reduce the gap between the Average Cost of Supply (ACS) and Average Revenue Realised (ARR) to zero by increasing the ACS to match the ARR by 2024-25.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is correct but Statement-II is incorrect. Statement-I is correct. The text explicitly states that the RDSS was launched to assist DISCOMs in improving their operational efficiencies and financial sustainability. Statement-II is incorrect. The objective is to reduce the gap between the Average Cost of Supply (ACS) and Average Revenue Realised (ARR) to zero (ACS - ARR = 0). However, the statement incorrectly implies this is to be achieved by increasing the ACS. Improving financial sustainability would involve measures to reduce the ACS (e.g., by reducing losses) and/or increase the ARR (e.g., through timely tariff revisions and better collection), not by increasing the cost of supply.

Question 16

Consider the following statements regarding government initiatives in the power sector:
1. The UJALA scheme was launched to replace conventional street lights with smart and energy-efficient LED street lights across India.
2. The Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) was initiated by the Government of India to attain universal household electrification.
3. The Mission on Advanced and High-Impact Research (MAHIR) was established to facilitate the evacuation of renewable energy and reconfigure the grid system.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The objective described, replacing conventional street lights with LED lights, corresponds to the Street Lighting National Programme (SLNP). The UJALA scheme's objective is to market LED bulbs, tube lights, and energy-efficient fans to household consumers. Statement 2 is correct. The text clearly states that the Pradhan Mantri Sahaj Bijli Har Ghar Yojana, or ‘Saubhagya,’ was initiated to attain universal household electrification. Statement 3 is incorrect. The objective described, facilitating renewable energy evacuation, corresponds to the Green Energy Corridor initiatives. The Mission on Advanced and High-Impact Research (MAHIR) was established to utilise emerging technologies in the power sector.

Question 17

With reference to major global energy reports and organizations, consider the following statements:
1. The World Economic Forum (WEF) publishes the 'World Energy Outlook'.
2. The International Energy Agency (IEA) is responsible for the 'Energy Transition Index'.
3. India holds the status of a full member country within the International Energy Agency (IEA).
How many of the above statements are correct?

Accepted Answer

None. Statement 1 is incorrect. The World Energy Outlook is published by the International Energy Agency (IEA), not the World Economic Forum (WEF). Statement 2 is incorrect. The Energy Transition Index is published by the World Economic Forum (WEF) as part of its 'Fostering Effective Energy Transition' report, not by the IEA. Statement 3 is incorrect. India joined the IEA as an Association country in 2017, not as a full member. The text specifies that only OECD member countries can become IEA members.

Question 18

Consider the following statements regarding the challenges in India's energy sector:
Statement-I: The dominance of the public sector in electricity generation is considered a limiting factor in meeting the country's energy challenges.
Statement-II: The poor financial health of State Distribution Companies (DISCOMS), caused by populist tariffs and high losses, leads to under-procurement of power.
Which one of the following is correct in respect of the above statements?

Accepted Answer

Both Statement-I and Statement-II are correct but Statement-II is not the correct explanation for Statement-I.. Statement-I is correct. The provided text states that the public sector has a practical monopoly in the electricity generation industry and is unable to meet the challenges, implying it is a limiting factor. Statement-II is also correct. The text explicitly mentions that debt accrual from populist tariffs and operational inefficiencies harms DISCOMS' financial health, which in turn leads to power under-procurement. However, Statement-II does not explain Statement-I. The text presents the public sector monopoly and the financial health of DISCOMS as two distinct, albeit related, challenges. The monopoly issue is linked to a lack of management facilities and limited opportunity for private players, not directly caused by the financial issues of DISCOMS.

Question 19

With reference to India's power sector and its transition towards clean energy, consider the following statements:

1. India has already achieved its nationally determined goal of having 50% of its total installed electricity capacity from non-fossil fuel sources.
2. According to official projections for the next decade, wind power is expected to constitute the largest share of India's total installed capacity, followed by solar power.
3. The National Green Hydrogen Mission primarily aims to decarbonize the power generation sector by replacing thermal power plants.

How many of the statements given above are correct?

Accepted Answer

Only one. Statement 1 is correct. India has successfully met its 2030 target of achieving 50% of installed electricity capacity from non-fossil fuel sources ahead of schedule. Statement 2 is incorrect. Projections from the Central Electricity Authority indicate that solar power (projected at ~40%) will form the largest component of installed capacity, significantly more than wind power (~13%). Statement 3 is incorrect. The National Green Hydrogen Mission's primary focus is on decarbonizing hard-to-abate sectors like fertilizers, refining, and steel, not directly replacing thermal power plants.

Question 20

Consider the following statements regarding the framework for developing geothermal energy resources in India:

1. The extraction of mineral by-products, such as lithium, from geothermal fields is exclusively governed by the provisions of the National Policy on Geothermal Energy.
2. The policy framework encourages the utilization of abandoned oil and gas wells for geothermal energy extraction.
3. Under the new framework, the central government is the sole authority for granting both exploration and development leases for geothermal projects.

How many of the statements given above are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The extraction of valuable mineral by-products from geothermal activities is regulated under the Mines and Minerals (Development and Regulation) Act, not exclusively by the geothermal policy. The policy works in conjunction with existing mining laws.

Statement 2 is correct. The policy framework explicitly promotes using existing infrastructure, including abandoned oil and gas wells, to tap into geothermal energy, which is considered a cost-effective approach.

Statement 3 is incorrect. The authority to issue exploration and development leases for geothermal energy is generally vested with the respective State/UT governments, consistent with the framework for other minerals, not solely with the central government.

Question 21

With reference to the coal sector in India, consider the following statements:

1. In India, Gondwana coal deposits are predominantly found in peninsular river valleys, while Tertiary coal is largely confined to the northeastern states.
2. Coal constitutes the single largest commodity by volume transported by Indian Railways, significantly contributing to its freight earnings.
3. The financial viability of India's coal sector is increasingly dependent on cross-subsidies from the renewable energy sector.

How many of the statements given above are correct?

Accepted Answer

Only two. Statement 1 is correct. Major Gondwana coalfields are located in river valleys like Damodar and Godavari, while Tertiary deposits are found in northeastern states like Assam and Meghalaya. Statement 2 is correct. Coal is the largest single commodity transported by Indian Railways, forming a substantial portion of its freight revenue and subsidizing other operations. Statement 3 is incorrect. The financial flow is in the opposite direction; revenue generated from the coal sector is utilized to support and fund the expansion of renewable energy capacity.

Question 22

With reference to India's primary energy consumption and its sources, consider the following statements:
1. In India's primary energy mix, the share of natural gas is greater than that of petroleum and other liquids.
2. Large hydropower projects are categorized as a non-conventional source of energy, similar to solar and wind power.
3. Despite achieving near-universal household electrification, India's per capita electricity consumption remains below the global average.
How many of the statements given above are correct?

Accepted Answer

Only one. Statement 1 is incorrect. In India's primary energy mix, the share of petroleum and other liquids (around 25%) is significantly higher than that of natural gas (around 5%). Coal remains the dominant source. Statement 2 is incorrect. The Government of India classifies large hydropower projects (above 25 MW) as a conventional source of energy. Only small hydropower projects are categorized as non-conventional or renewable. Statement 3 is correct. While India has achieved near-universal electricity access, its per capita consumption is still considerably lower than the global average, indicating significant latent demand.

Question 23

With reference to government initiatives for reforming power Distribution Companies (DISCOMs), consider the following statements:
1. The Ujwal DISCOM Assurance Yojana (UDAY) primarily focuses on providing performance-linked financial assistance to achieve pre-defined operational improvements.
2. The Revamped Distribution Sector Scheme (RDSS) mandated state governments to take over a significant percentage of DISCOM debt through bonds.
3. The Late Payment Surcharge (LPS) Rules were introduced to enforce financial discipline by allowing DISCOMs to clear legacy dues in instalments.
Which of the statements given above is/are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The UDAY scheme's primary mechanism was the financial takeover of DISCOM debt by states. Performance-linked financial assistance is the core feature of the RDSS. Statement 2 is incorrect. The takeover of DISCOM debt by states through bonds was the central component of the UDAY scheme, not RDSS. Statement 3 is correct. The LPS Rules were specifically designed to address the large outstanding dues of DISCOMs by creating a mechanism for payment in equated monthly instalments.

Question 24

Consider the following statements regarding the performance of India's power distribution sector:
1. Aggregate Technical and Commercial (AT&C) losses have consistently increased in recent years despite multiple government interventions.
2. The gap between the Average Cost of Supply (ACS) and Average Revenue Realised (ARR) has widened, indicating deteriorating financial viability.
3. Under the Constitution, 'power' is a concurrent subject, with state governments primarily responsible for electricity distribution.
Which of the statements given above is/are correct?

Accepted Answer

3 only. Statement 1 is incorrect. Recent data indicates a significant reduction in AT&C losses, from over 22% to around 15%, reflecting improved operational efficiency. Statement 2 is incorrect. The ACS-ARR gap has narrowed, which is a key indicator of the recent financial turnaround in the sector, although challenges remain. Statement 3 is correct. As per the Seventh Schedule of the Constitution, 'Electricity' is in the Concurrent List, and states are responsible for its distribution.

Question 25

Examine the following two statements:
Statement-I: Despite recent improvements in profitability, the financial health of many power Distribution Companies (DISCOMs) remains structurally dependent on state government support.
Statement-II: The Electricity Act mandates that all tariff subsidies must be exclusively funded by the central government to ensure uniform pricing across states.
Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is correct but Statement-II is incorrect.. Statement-I is correct. The recent financial turnaround of DISCOMs is largely attributed to tariff subsidies and direct loss absorption by state governments, indicating a continued dependence on fiscal support. Statement-II is incorrect. The provision and funding of tariff subsidies fall under the purview of state governments, not the central government. There is no mandate for exclusive central funding to ensure uniform pricing; in fact, tariffs vary significantly across states.

Question 26

With reference to the World Economic Outlook report, consider the following statements:

1. It is a biannual report published by the World Economic Forum providing global economic analysis.
2. The report's scope is limited to economic growth projections, excluding financial stability assessments.
3. It has attributed the moderation in India's growth trajectory to the waning of post-pandemic pent-up demand.

How many of the statements given above are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The World Economic Outlook (WEO) is published by the International Monetary Fund (IMF), not the World Economic Forum (WEF). Statement 2 is incorrect. The WEO's components include a Financial Stability Assessment, which evaluates risks to financial systems. Statement 3 is correct, as the report links the growth slowdown from a higher base to the exhaustion of pent-up demand.

Question 27

Consider the following statements regarding the International Energy Agency (IEA):

1. Membership in the IEA is conditional upon being a member country of the OECD.
2. India, despite not being an OECD member, holds the status of a full member in the IEA.
3. The IEA publishes the 'Energy Transition Index' to track progress towards sustainable energy systems.

Which of the statements given above is/are correct?

Accepted Answer

1 only. Statement 1 is correct. The IEA's framework requires its members to be part of the OECD. Statement 2 is incorrect. India is an 'Association country' of the IEA, which is a distinct status from being a full member. Statement 3 is incorrect. The 'Energy Transition Index' is published by the World Economic Forum (WEF), not the IEA.

Question 28

Consider the following statements regarding the structural trends in India's energy sector:

Statement-I: To meet the rapidly growing energy demand, the relative share of coal in India's total power generation mix is expected to continue its long-term increasing trend.

Statement-II: The accelerated expansion of renewable energy capacity is primarily aimed at meeting the incremental growth in the country's electricity demand.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is incorrect but Statement-II is correct.. Statement-I is incorrect. While the absolute generation from coal may continue to rise in the short to medium term to meet base load demand, its relative share in the total power generation mix is on a declining trajectory. This is a core objective of India's energy transition policy. The long-term trend is a decreasing, not increasing, share for coal. Statement-II is correct. A central pillar of India's energy strategy is to use the rapid expansion of renewable sources, particularly solar, to meet the majority of the new or incremental electricity demand. This allows for economic growth without proportionally increasing the carbon footprint from the power sector.

Question 29

With reference to Rare Earth Elements (REEs) and their strategic importance for India, consider the following statements:

1. The term 'rare earth' is a misnomer as these elements are relatively abundant, but their economically viable deposits are uncommon.
2. India's share of global REE reserves is significantly larger than its share of global production.
3. In India, the exploration and mining of all 17 Rare Earth Elements are exclusively reserved for government-owned entities.

How many of the statements given above are correct?

Accepted Answer

Only two. Statement 1 is correct. REEs are not geologically rare, but they are seldom found in concentrated, economically exploitable deposits, making their extraction complex. Statement 2 is correct. India possesses approximately 6% of the world's REE reserves but contributes only about 1% to global production, highlighting underutilization. Statement 3 is incorrect. Recent policy amendments have opened the exploration and mining of several critical minerals, including some REEs, to the private sector to boost domestic output.

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