IN­DIA COM­MITS NU 1BN MORE OUT­SIDE THE TAR­IFF

Business Bhutan - - Money -

In order to off­set the loss in rev­enue from the dif­fer­ence in pro­posed tar­iff for Mangdechhu hy­dropower project and the fi­nal tar­iff, which is about Ch­hel­trum 15 a unit, the gov­ern­ment of In­dia has agreed to pro­vide ad­di­tional Nu 1bn out­side the tar­iff cy­cle with ex­ten­sion in loan pe­riod.

To de­ter­mine elec­tric­ity tar­iff, var­i­ous pa­ram­e­ters such as re­turn on eq­uity, op­er­a­tion and main­te­nance cost, cost of fi­nanc­ing, roy­alty and reg­u­la­tions of the re­spec­tive coun­tries among oth­ers are con­sid­ered and the Bhutanese side had pro­posed Nu 4.27 a unit and the In­dian coun­ter­parts came up with Nu 3.9 per unit.

Mean­while, elec­tric­ity in In­dia is traded at Nu 4.5 a unit.

Newspapers in English

Newspapers from Bhutan

© PressReader. All rights reserved.