RANCHI: The Jharkhand government on Wednesday decided to exit a tripartite agreement on power with the Centre and the Reserve Bank of India (RBI).
A decision to this effect was taken during a cabinet meeting chaired by Chief Minister Hemant Soren.
The decision was taken in view of the manner in which Jharkhand's pending power dues to the Damodar Valley Corporation were deducted from the state's account in the RBI without taking the state government into confidence, Soren told reporters.
The cabinet decided to pull out of the agreement as it is not in the best interest of the state, he said.
The Centre's decisions like these affect the federal structure of the country, Soren said.
The Centre had on October 16 instructed the RBI to deduct the first instalment of Rs 1,417.5 crores from Jharkhand's account.
As per the tripartite agreement, the Centre has the power to auto-debit the dues of a state to central power discoms from the state's RBI account.