Bhutan’s PM Tshering Tobgay tweeted, that Government of India has agreed to our request to increase the tariff for Chhuka by 30 Chhetrums, from Nu 2.25 to Nu 2.55 per unit.
Prime Minister Tshering Tobgay was on his maiden visit to Assam for the global investor’s summit underway in Guwahati, met with Prime Minister Modi on the sidelines of the summit.
The 30 chhetrums increase in tariff is more than the last tariff increase which happened in 2014. This increase will help Bhutan improve its fiscal position and Indian rupee reserves.
With the increase, earnings from the exports of electricity from the Chhukha hydropower plant will be Nu 4097.85 million in 2017. Bhutan will earn an additional revenue of Nu 482.1 million.
Chhukha is Bhutan’s oldest hydropower plant, at the site of the Wangchhu, which uses the discharges of Thimphu, Paro and Haa valleys.
This decision is significant as India and Bhutan is commemorating 50 years of formal diplomatic relationships this year.
Chhukha hydropower plant marked the beginning of a successful and mutually beneficial partnership in the hydropower sector.
Chhukha hydropower plant was initiated in 1974, and was commissioned in 1988 after its inauguration by president R Venkataraman of India.