Sci-Tech · 2 Aug 2026

Levelised Cost of Electricity

With reference to the recent cost overruns in India's nuclear power projects, which of the following statements is correct?

AThe Kudankulam reactor cost overrun is primarily attributed to Russia-Ukraine war-related supply chain disruptions, while the Rawatbhata (Rajasthan Atomic Power Project) overrun, involving indigenous PHWR technology, has no such war-related cause.
BBoth the Kudankulam and Rawatbhata cost overruns are attributed entirely to Russia-Ukraine war-related supply chain disruptions.
CThe Rawatbhata project uses Russian-designed VVER reactor technology, making it directly exposed to Russia-Ukraine war disruptions.
DCapital costs account for less than 20 percent of nuclear power's Levelised Cost of Electricity, making construction-phase overruns largely irrelevant to final tariffs.

Tests the ability to correctly attribute distinct causal mechanisms to two similar-sounding cost overruns rather than conflating them under one narrative.

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About this question

Why in news

A Lok Sabha disclosure revealed a 55% cost overrun at Kudankulam and an even steeper 86% overrun at the indigenous Rawatbhata project, with fundamentally different underlying causes.

Why for UPSC

UPSC often tests whether aspirants can correctly attribute causation to the right project rather than conflating two similar-sounding cost overruns with a shared superficial narrative but distinct underlying mechanisms.

Prelims summary

Kudankulam's cost overrun stems from Russia-Ukraine war-linked VVER supply chain disruption, while Rawatbhata's larger, indigenous PHWR overrun reflects domestic execution issues unrelated to the war - two distinct diagnoses requiring different policy fixes.

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