Jharkhand will exit from the tripartite agreement signed with the Union power ministry and Reserve Bank of India (RBI) by the former chief minister Raghubar Das.
The agreement was signed to purchase power from Damodar Valley Corporation (DVC) to prevent the arbitrary deduction of money from the state’s coffers.
Describing the agreement as lopsided, the state cabinet on Wednesday approved its cancellation. Announcing the decision later, state energy secretary Avinash Kumar said a cabinet nod was being sought to prevent auto-deduction of money from Jharkhand’s account in RBI.
“Despite repeated requests to the Centre to clear outstanding dues, the Union ministry last year invoked tripartite agreement clause to auto-debit the money from our accounts in RBI.
