Indian firms get contracts to build two large IPPs sans bidding

FE Report | Published: June 07, 2015 00:00:00 | Updated: November 30, 2026 06:01:00

The government inked Saturday memoranda of understanding (MoU) with two leading privately-owned Indian firms for building 4,600 megawatt (MW) capacity power plants bypassing tender procedure.
State-run Bangladesh Power Development Board (BPDB) inked the 'unsolicited' deals with Indian Adani Power Ltd and Reliance Power Ltd at Bidyut Bhaban in the city to set up a 1,600 MW coal-fired and another 3,000 MW re-gasified liquefied natural gas (LNG)-based power plants costing $5.50 billion.
The MoU signing day coincided with the first day of Indian Prime Minister Narendra Modi's two-day visit to the country.
Reliance is set to invest $3.0 billion to set up 3,000 MW (4X750 MW) re-gasified LNG-based combined cycle power plant, while Adani will invest $2.5 billion to build a 1,600 MW (2X800 MW) ultra super critical coal-fired power plant.
As per the MoU, both these power plants would be independent power producers (IPPs) and be built on build-own-operate (BOO) basis.
Under the deal, Reliance Power will develop the combined cycle power project in phases along with a Floating Storage and Re-gasification Unit (FSRU) based LNG terminal to supply re-gasified LNG to the power project.
The land for the power project will be provided by the BPDB at appropriate location.
The FSRU terminal will be set up at Maheshkhali Island in Cox's Bazar district. Adani Power will build its 1,600 MW coal-fired power plant either at Maheshkhali island in the Bay of Bengal or any other suitable location.
The BPDB is set to purchase electricity from both these power plants to be built by Indian firms.
The tariff rate for buying electricity was not disclosed in the MoU. State Minister for Power, Energy and Mineral Resources Nasrul Hamid was the chief guest at the MoU signing ceremony.
Speaking on the occasion, Mr Hamid said a new horizon has been opened up in relations between the two countries with the signing of MoUs.
"The boundaries which had been existing for the last 40 years among the friendly countries in the region are going to go away through this new horizon," he said."We all are going to be transformed into one state".
He said the government is currently importing around 500 MW of electricity from India, which would increase by 100 MW more by the end of this year.
"Efforts are also there to import hydro-electricity from neighbouring Nepal and Bhutan," he added.
Mr Hamid said many countries and firms around the globe are becoming increasingly interested to invest in the country seeing the success of the government.
With power secretary Monwar Islam in the chair, the function at the Mukti Hall of the Biddyut Bhaban in the city was also addressed by energy secretary Abubakar Siddique, chairman of the parliamentary standing committee on power and energy ministry Md Tazul Islam, BPDB chairman Shahinul Islam Khan, Reliance Group president Rony Jesudasan, Adani Group top executive Raja Hasnain, and senior officials of Bangladesh and India.
mazizur.rahman@outlook.com