India agrees to increase Chukha tariff

10 November 1999

The tariff for the Chukha hydroelectric project in Bhutan increased on 1 October, with the newly established Power Trading Corporation (PTC) of India responsible for the power trading. PTC replaces the Power Grid Corporation, which was previously in charge of receiving and distributing Chukha power.

The tariff has been increased for the generation period from October 1999 to May 2000. Of the total 1350M kWh generated annually by the Chukha hydro project, around 550M kWh is generated between October and May each year. Between June and September, the tariff will remain at the present rate, with the users paying a charge per unit for transmission of power from Birpara in North Bengal.

The 336MW (4x84MW) Chukha project in Bhutan was implemented with financial and technical assistance from India. Another project in Bhutan, the 45MW Kurichi hydroelectric project, is being implemented in the same manner.

Preparatory work is also under way on the 1020MW Tala project, originally conceived as the second stage of the Chukha project. The Tala project is to be funded and implemented by India.

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