Dasho
Karma Ura’s article titled ‘Four Subsidy Cuts’ in Kuensel 6th July,
2013 does reveal albeit indirectly how and why the subsidy grants on gas,
kerosene etc. have been withdrawn by India.
He says
Chukha power export rate to India is Nu: 1.55 per unit excluding Nu: 0.45
subsidy grant per unit. He does not talk of rates from other Projects like
Tala, Basochu, Kurichu, so maybe only Chukha rate is up for re-negotiation with
India this time around. And Bhutan under Interim Government had publicly
declared the new proposed power rate in Bhutan from 1st July, 2013
to be Nu: 4 per unit (not yet finalized). This means minimum re-negotiation export
power rate would be Nu: 4 per unit, a jump of Nu: 2.45 per unit that India has
to pay. The additional income from enhanced power export rate from Chukha would
be more than Rupees 4 billion which more than actually covers the amount of subsidy
grants withdrawn by India. This is in line with Dasho Karma Ura’s statement to
quote, “Interim Government is not implicated as the cause of the withdrawal of
subsidies. Nothing could be far from truth.”
India
has in the past reduced its subsidies or grants in proportion to Bhutanese income
increase from hydro power export. Thus choosing 1st July, 2013 to withdraw
the subsidy grants coincides with the previous public declaration of Interim Government
to raise power rate to Nu: 4 per unit effective from 1st July, 2013.
Therefore the timing of the withdrawal of the subsidy grants does not indicate
any change in the existing political statuesque between the two countries.
After
all the speculations of heavy politics, it seems there is no as such specific political
intent involved in the withdrawal of subsidy grants by India. It was a standard
economic tit for tat sparring between grants from India versus power export
rate from Bhutan. Maybe the External Affairs of India would be informing the
Interim Government of Bhutan that Indian subsidies or grants on gas, kerosene
etc. would be re-introduced until the proposed power rate is effected from the Bhutanese
side.
From Dashi Ura's article, it says "Since the unit price of electricity has been reduced now to INR 1.55, the electricity revenue will be reduced to INR 2.73 billion with a loss of INR 910 million annually."
ReplyDeleteHe did not say the export tariff was going to be increased to INR 4 per unit. In fact, it says the INR .45 per unit subsidy was going to be removed, which will result in lower revenues for us.
And also I thought the recent power tariff increase to Nu 4 per unit by BPC was only for the domestic users and not the export rate. I think BPC only handles domestic power, whereas DPGC is the one who exports to India. Please show me where it says the export price is going to be Nu 4 per unit, and I stand corrected.
Here Dasho, you are trying some illusion to divert public attention away from DPT's mistakes. You were doing well with your matured views and analysis but now you are beginning to show different color, which suddenly brings all your prior articles under question. Thank you, I think you are no different than anyone anymore.
ReplyDeleteWHY NOT TELL THE TRUTH TO US, THE POOR PUBLIC @ Dasho Karma Ura
ReplyDeletePlease write if you have in-depth information...such an incomplete article...
ReplyDeleteVery interesting is happening within advisers of the Interim government. I personally feel that Dasho Karma Ura's article on annoucement chukha tariff and excise duty are too immature to make public announcement when GOI has not yet officially conveyed to the RGoB.
ReplyDeleteMore interestingly adviser to MoEA has confirmed there is no such thing as subsidy for Chukha electricity export.
Hope advisers are not being dragged by some political motives.
It is said that buffalows in Indain plains always look up for himalayan yaks to bring them rock salts. Similarly Bhutanese always look up for GNH from outside not realising it is within oneself.
ReplyDeleteFantastic view point. GNH is indeed within us and its only a question of how sincerely we pursue it and how we pursue it. We can not have GNH unless we really practice zero tolerance to corruption, have absolute transparency in governance, have laws that have no loopholes, laws that are practical and serve the purpose intended for the benefit and development of the society as a whole. The most recent case of a young man from Sibsu being sentenced to nine years imprisonment on rape charges even though he had married this seventeen years old girl with the consent of their family members and married in front of the society is an example. If this over excited and selfish school authorities had not reported to the Police the person would be with his wife and supporting his poor mother. These type of incidents taking place due to loop holes in the law make our GNH little bit elusive. Nonetheless,it is not too late and hopefully the new MPs will make an attempt to address such issues through new legislations or amendments with the aim of making the concept of GNH more meaningful
ReplyDelete