India steps up power supply to Bangladesh

Pratim Ranjan Bose Updated - December 10, 2013 at 09:52 PM.

India will supply up to 250 MW electricity every day from NTPC’s power plants for 25 years.

India has started supplying up to 500 MW of power on a daily basis to Bangladesh.According to a bilateral agreement, India had started selling 250 MW of electricity to the neighbouring nation from October 5. The supplies were stepped up after the transmission network on the Bangladeshi side was strengthened, said sources at PowerGird Corp of India Ltd.

Tariff

According to the bilateral agreement, India will supply up to 250 MW electricity every day from NTPC’s power plants at the Central Electricity Regulatory Commission (CERC)-determined domestic tariff, for 25 years. The CERC tariff, which is subject to be revised depending on the cost push, is now pegged at Rs 4.33 a unit (taka 5.5).

Bangladesh is free to import the residual 250 MW from the Indian open market. To start with, the neighbouring country has inked a short-term deal with an Indian power trading company to buy 250 MW a day (supplied by Bengal State Electricity Distribution Co) at Rs 5.11 a unit (taka 6. 5).

Increasing co-operation

NTPC and the Bangladesh Power Development Board have already entered into a joint venture agreement for Bangladesh India Friendship Power Co Pvt Ltd for setting up a 1,320-MW thermal power plant at Khulna, Bangladesh.

PowerGird has also expressed interest with the Bangladeshi authorities in executing a part of the transmission project to evacuate power from the joint venture generation facility.

Published on December 10, 2013 16:22