Bhutan has urged India to accept an upward revision of tariff for hydropower that comes from its Chukha hydroelectricity project to India. According to Managing Director of Druk Green Power Corporation, Bhutan, Dasho Chhewang Rinzin, Bhutan is in touch with the Government of India for an upward revision of the Chukha power tariff from the present rate of Rs 2 per unit.
The price reversion should be done considering the international benchmarking and bilateral relationship between Bhutan and India, said Bhutan Finance Ministry officials. The development has taken place following India's decision to cut down the subsidy that it has been providing behind the power procured from Chukha.
According to Dasho Karma Ura, Advisor to the Bhutan Ministry of Finance, Power Trading Corporation of India purchases power from Bhutan at a base price of Rs 1.55 per unit. But GoI gives a subsidy of Rs 0.45 per unit making the total price received by Bhutan as Rs 2 per unit. With its average production of around 180 crore units a year, Chukha will have to face a revenue reduction of around Rs 90 crore per year following this subsidy cut down.
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