Official Answer Key & Detailed Solution
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Correct Answer: Option (A) — 1 only
Concept & Option Breakdown
Standard Reference Verified- Statement 1 is correct: The Baglihar Hydroelectric Power Project on the Chenab River was ruled by a World Bank-appointed neutral expert (Professor Raymond Lafitte) to be in conformity with the Indus Waters Treaty 1960.
- Statement 2 is incorrect: It was developed by the Jammu & Kashmir State Power Development Corporation (JKSPDC) and financed through domestic financial institutions, not as a Union government project built with loans from Japan and the World Bank.
Statement 2 uses the extreme word 'completely built by Union government with loans from Japan...', which is factually inaccurate for this state utility project.
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