The Union Cabinet chaired by Prime Minister Narendra Modi on Thursday approved amendment to the Article 3 of the Agreement between India and Bhutan regarding Mandechhu Hydro Electric Project (MHEP) in order to extend the loan repayment tenure by two years extended by India to Bhutan.
It aims for implementation of the said project in Bhutan from fifteen to seventeen years.
Ready for a challenge? Click here to take our quiz and show off your knowledge!
The Cabinet decision will certainly strengthening India-Bhutan economic relations and inter-linkages especially in the field of hydro-power co-operation and overall deepening of India-Bhutan relations.
The proposal also aims to secure the First Year Tariff for import of power from the 720 MW MHEP in Bhutan at Indian Rupees 4.12 per unit.
“It will also ensure certainty of supply of surplus power to India by Bhutan from MHEP,” a government release said.
Ready for a challenge? Click here to take our quiz and show off your knowledge!
It may be mentioned that India and Bhutan in the last week of December last year agreed on the contentious issue of tariff for the electricity generated from the 720 MW Mangdechhu hydropower project in central Bhutan.
This was announced by Prime Minister Narendra Modi during his speech following his meeting with Bhutanese PM Dr Lotay Tshering who visited India in the last week of December, 2018.
India had been expecting an increase in the plan allocation sought by the new government particularly given its emphasis on ‘Narrowing the Gap’ which was the electoral pitch of Dr Tshering’s party, the Druk Nyamrup Tshogpa (DNT).
The agreement on the per unit cost of electricity from this project was learnt to have been agreed upon during a meeting on December 29 night between Indian and Bhutanese officials.