Ch­hukha power ex­port tar­iff in­creases by 30 Chel­trum a unit

Bhutan Times - - Front Page - Lhakpa Tsh­er­ing

In­dia gov­ern­ment in­creased tar­iff for Ch­hukha hy­dropower plant (CHP) by 30 Chel­trum, from Nu.2.25 to Nu.2.55 a unit with ef­fect from 1 Jan­uary 2017.

The ex­port tar­iff of CHP was revised be­tween Prime Min­is­ter Dasho Tsh­er­ing Tob­gay and In­dian Prime Min­is­ter Naren­dra Modi on the side­lines of the Ad­van­tage As­sam In­vestors Sum­mit in Guwahati on 3 Fe­bru­ary.

The last sev­enth tar­iff was revised by 25 Chel­trum to 2.55 Chel­trum a unit in 2014. A press re­lease from the of­fice of the Prime Min­is­ter states that the 30 Chel­trum in­crease is a big­ger in­crease than the last tar­iff re­vi­sion which hap­pened in 2014.

With in­crease by 30 Chel­trum, the 336MW Ch­hukha hy­dropower project would earn Nu.4,097.85 m from the ex­port of elec­tric­ity in 2017, which amounts an ad­di­tional rev­enue of Nu.482.1 m. This in­crease will help the gov­ern­ment im­prove its fis­cal po­si­tion and In­dian ru­pee re­serves.

The de­ci­sion is sig­nif­i­cant as Bhutan and In­dia is com­mem­o­rat­ing 50 years of for­mal diplo­matic re­la­tion­ship this year. Prime Min­is­ter Tsh­er­ing Tob­gay dur­ing the bi­lat­eral meet­ing high­lighted this spe­cial ges­ture of for­mal diplo­matic re­la­tions. Prime min­is­ter said, “CHP is an iconic power project that her­alded the be­gin­ning of a suc­cess­ful and mu­tu­ally ben­e­fi­cial part­ner­ship be­tween In­dia and Bhutan in the hy­dropower sec­tor.”

A hike would be given around ev­ery four years and it would de­pend on fac­tors such as project fi­nanc­ing cost, dep­re­ca­tion rates and num­ber of projects among others.

The tar­iff was revised around seven times, since the com­mis­sion­ing. The first tar­iff hike was in 1990 when the ear­lier dif­fer­ent rates of Nu.0.13 a unit for sec­ondary en­ergy and Nu.0.26 for firm en­ergy fixed in 1986 was uni­formed at Nu.0.26 a unit. The sec­ond tar­iff was sold at Nu.0.37 a unit in 1993 and then to Nu.0.50 a unit in 1995 in its third re­vi­sion. In the fourth re­vi­sion, the tar­iff was in­creased to Nu.1.50 a unit in 1997, while the fifth hike made it to Nu.1.50 a unit in 1999. The sixth re­vi­sion in 2005 in­creased the tar­iff to Nu.2 a unit.

It was to fur­ther strengthen the re­la­tions and friend­ship be­tween the two coun­tries. A press re­lease states, “This sig­nif­i­cant tar­iff re­vi­sion is a re­flec­tion of the good­will and ex­tremely closes ties of friend­ship be­tween Bhutan and In­dia.”

The Ch­hukha project is next to Tala project in terms of hy­dro project rev­enue. On an av­er­age, the project gen­er­ates around 1,800m units of power to In­dia an­nu­ally.

The CHP was ini­ti­ated in 1974 and com­mis­sioned in 1988 af­ter its in­au­gu­ra­tion by Pres­i­dent R. Venkatara­man of In­dia.

The hike in the past co­in­cided with vis­its of His Majesty The Fourth King to In­dia.

Ly­onch­hen ( Dasho) Tsh­er­ing Tob­gay met Prime Min­is­ter Naren­dra Modi on the side­lines of the Ad­van­tage As­sam In­vestors Sum­mit in Guwahati

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