Druk Holding and Investments (DHI) recorded an increase of 8 percent in their income in 2012. They remitted to the Finance Ministry, including taxes, Nu.4.5 billion, an increase of six percent from 2011.
The newly published report of the DHI Companies showed, last year was a successful year. In 2012, the revenue from all the DHI owned companies put together increased by ten percent. Tax contribution increased by four percent and profit after tax increased by six percent compared to 2011.
Asked if 8 percent was good enough for the companies, the Chairman of DHI, Om Pradhan, said they could have done better.
“Why we didn’t do better is because of the fact that we have not been able to increase the power tariffs. This is one of the big areas as you know 85 percent income of the DHI, 85 percent of the revenue of government of Bhutan comes from power and it is here that we have been not very efficient in increasing the power tariff.”
The Chairman said they have taken up the matter with the Ministry of Economic Affairs because the ministry has the Bhutan Electricity Act. “We have taken it up to the government, with the cabinet that it is essential it is time to increase the power tariffs.”
He said unless the power tariffs are increased, the revenue of the government cannot be expected to increase anytime soon.
The report also made a specific mention of Druk Green Power Corporation making only a marginal increase in their revenue despite no control in power tariff that is fixed, increasing domestic consumption of electricity and lower power generation due to the poor monsoon.
Overall, the company achieved remarkable revenue from all of its owned companies. In the same period last year, the 2011 Annual Report showed their income had fallen by over two percent due to some of its companies failing to meet the revenue targets.
