Thursday, January 3, 2019

Mandechu electricity sales tariff to India.

1. The rate of Rs 4.12 per unit is said to be highest compared to Chukha and Tala. How come the comparision came about?  The figure maybe high but value is low. To understand it, compare the cost of construction per megawatt for Chukha, Tala and Mangdechu. Economy is all about inflation and rising cost of living. So why make a fool of oneself by drawing irrelevant comparisions and reaching false conclusions? 

2. To evaluate the reasonability of export tariff  accepted by India for Mangdechu hydroproject electricity export, Bhutan needs to look into the repayment of hydro loan and interests. The initial worked out loan repayment period was 15 years. Now it is deferred to 17 years. The culprit is low export rate. If rate was fair as per investment incurred, Bhutan would have repaid loan liabilities in 15 years. But the expirt tariff is low  so now Bhutan will take additional 2 years to repay the full hydro loan + 10% interest.

3. It is said that India is giving Bhutan this time a  Rs.1 billion to compensate for the lower export tariff.  Why could India not give a fair rate for Bhutanese electricity that she imports. Why force Bhutan into a position of accepting alms instead of giving Bhutan a fair electricity tariff?  India wants Bhutanese leaders on their knees begging so that Bhutan is easy to manipulate.

Please note revision of export rate after 5 years  is based on Rs. 4.12 per unit. Does this mean that India will give additional sum of more than present Rs.1 billion after every tariff  revision to compensate for the loss Bhutan will continue to  suffer in export tariff ?   

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