By IANS
New Delhi : Indian state electricity boards (SEBs) getting power from Bhutan at subsidised rates might have to pay market rates from Jan 1 if the Ministry of External Affairs (MEA) has its way on phasing out the subsidy.
States like Sikkim and Bihar as well as the central utility Damodar Valley Corp (DVC) are drawing power from the Chukkha and Kurichu hydro power plants in Bhutan at subsidised rates.
The MEA is coughing up Rs.1 billion ($25 million) a year on subsidised power from these two plants. It currently provides a subsidy of 50 paisa per unit.
But this time, the MEA has put its foot its down, saying that its scarce resources should not be used for subsidising power and that SEBs should bear the full cost of drawing power from these plants.