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Jharkhand decides to withdraw from tripartite power agreement with Center, RBI | India News

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RANCHI: The Jharkhand government decided on Wednesday to exit a tripartite power agreement with the Center and the Reserve Bank of India (RBI).
A decision in this regard was made during a cabinet meeting chaired by Chief Minister Hemant Soren.
The decision was made in light of the way in which Jharkhand’s outstanding energy fees to Damodar Valley Corporation were deducted from the state’s RBI account without relying on the state government, Soren told reporters.
The cabinet decided to withdraw from the agreement because it is not in the best interest of the state, he said.
Center decisions like these affect the federal structure of the country, Soren said.
On October 16, the Center had ordered the RBI to deduct the first installment of Rs 1,417.5 million from the Jharkhand account.
Under the tripartite agreement, the Center has the power to automatically debit a state’s fees upon interruptions of central power from the state’s RBI account.

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