Following prime ministerial level bilateral agreement between India and Bhutan, both the countries have finally signed tariff protocol for the output of 720 Megawatt Mangdechhu hydropower project. First yield of this Rs 4,500-crore Bhutan project is set to get into India’s national power pool by May-June this year.
The agreement was signed by Bhutan’s economic affairs secretary, Dasho Yeshi Wangdi and the power secretary of India, Ajay Kumar Bhalla in Bhutan’s capital Thimphu.
Prior to this protocol finalisation, basic tariff structure was agreed upon by Indian Prime Minister Narendra Modi and his Bhutanese counterpart Lotay Tshering in December last year.
As per the finalised protocol detail provided by Bhutan Government’s Ministry of Economic Affairs, the starting tariff for a term of 35 years is Ngultrum 4.21 (Eqv. INR 4.21) per unit. That will go up at a rate of 10% every 5 years till Bhutan’s loan for the project is repaid and 5% afterward. Government of ..
Source:
https://economictimes.indiatimes.com/industry/energy/power/india-bhutan-sign-rs-4500-crore-mangdechhu-hydro-projects-power-tariff-protocol/articleshow/69053103.cms