India frees Bhutan from export power charges

India has acquiesced to Bhutan's demands for not imposing unscheduled interchange charges on supply of construction power.

This decision was made shortly after the Bhutanese authorities had furnished a request for additional power from India to execute construction activities under the '10,000 MW hydro power capacity addition by 2020' grand scheme.

The domestic demand, Bhutan rued, is a meager 300 MW and is primarily met from its nationwide hydro power stations.

To make matters worse, the domestic hydel generation during the lean months, or from January to April, is simply not enough to undertake construction of 10 upcoming projects.

India has taken a stand to export power and also book UI charges to the account of Indian beneficiary states of eastern and northern regions that receive 1,400 MW of power from Bhutan every year.

 Bhutan has been strongly against the UI mechanism and even expressed as much to the Indian authorities in the proposal for meeting Bhutan's power shortage during lean months.

From its three power plants -- Chukhha, Tala and Kurichhu -- Bhutan has exported 5,274 MU of power to India in 2011-12.

In return, it is seeking an offpeak power import of 67 MU in 2012-13, 113 MU in 2013-14, 198 MU in 2014-15, 335 MU in 2015-16 and 78 MU in 2016-17, making up just 1.27%, 2.15%, 3.75%, 6.36% and 1.48% respectively of the total power meant to be exported from Bhutan during each of these years.