Delhi yet to settle power tariff issue after Manmohan's promise
Sunday, 8 January 2012
Even about 5 months have elapsed after the visit of Indian Prime Minister Manmohan Singh when he assured of export of electricity to Bangladesh, Indian authorities are yet to settle issues of power tariff and plants from where power to be exported, reports UNB.
In such a situation, Bangladesh and Indian officials are likely to hold meeting of the joint steering committee either at the end of current month or in the first part of next month, Power Ministry officials said.
Bangladesh signed a power transmission agreement with India in 2010 to import 250MW electricity to meet the shortage. Another memorandum of understanding (MoU) was signed to build a 1320 MW coal-fired joint venture power plant.
During the Indian Prime Minister's Dhaka visit in September last, agreements on power purchase and setting up of a coal-fired plant were supposed to be signed with India. But finally it was not done because of non-settlement of the tariff and the relevant issues.
The steering committee is the highest body to deal with the matters related to cooperation in power sector. The power ministry secretaries of the two countries are the heads of the steering body. Under this body, a number of technical and working bodies are also working on the particular issues and met on a number of occasions. But the steering body met only once in a year.
The last meeting of the steering body was held in Dhaka in May last and the next meeting was supposed to take place in New Delhi in January or February in 2012. But Indian Power Ministry officials have not yet informed about the meeting.
A loan of about US$ 100 million from the Asian Development Bank remained stuck up for non-settlement of the power tariff with India.
The release of the fund depends on the signing of agreement with India,
India had initially proposed that the electricity tariff will be fixed by Indian Central Electricity Regulatory Commission (CERC) while the construction of the power transmission line will be completed in December 2012.
But Bangladesh did not agree to accept CERC's dominant role in fixing the tariff. Instead, it wanted both sides to fix the tariff through discussion and both sides should have similar authority.
During their last visit to New Delhi, Bangladesh officials raised the issue and sought the Indian consent on Bangladesh stance. But the Indian side failed to make clear their position on the matter. Until the issues of power tariff and power plant for power supply are settled, Bangladesh would not sign any agreement, said a top official of the Power Ministry.
According to other sources, Bangladesh still does not know from which power plant India will supply electricity. Even, it is not clear what will be the transmission cost for the import.
Under the present Indian proposal, the CERC will determine from which power plant the Indian government will supply the power to Bangladesh Power Ministry officials said Bangladesh has repeatedly asked the Indian side to let it know about the matter. But, so far there is no response. They said the location and specification of power plant are very important because the cost of electricity production and transmission depend on these two matters.
In the proposed import of electricity, the officials said there is some progress on the issue of transmission. Under a transmission agreement with the Power Grid Company of Bangladesh (PGCB), a 107 km 400-kV power transmission line from Indian Baharampur to Bangladesh ' s Bheramara are not being built along with two power stations at both ends.
Of this line, an 80 km transmission line will be installed on the Indian side while a 27 km line on Bangladesh side. The Power Grid Corporation of India Limited (PGCIL) is implementing the 80-km transmission line.
Similarly, the Power Grid Company of Bangladesh is implementing a project to build the substation and the 27-km line at a cost of Tk 10.47 billion. The substation alone needs Tk 8.50 billion.
But other than the transmission line nothing is clear to Bangladesh about the costs of different matters, the officials said.
In such a situation, Bangladesh and Indian officials are likely to hold meeting of the joint steering committee either at the end of current month or in the first part of next month, Power Ministry officials said.
Bangladesh signed a power transmission agreement with India in 2010 to import 250MW electricity to meet the shortage. Another memorandum of understanding (MoU) was signed to build a 1320 MW coal-fired joint venture power plant.
During the Indian Prime Minister's Dhaka visit in September last, agreements on power purchase and setting up of a coal-fired plant were supposed to be signed with India. But finally it was not done because of non-settlement of the tariff and the relevant issues.
The steering committee is the highest body to deal with the matters related to cooperation in power sector. The power ministry secretaries of the two countries are the heads of the steering body. Under this body, a number of technical and working bodies are also working on the particular issues and met on a number of occasions. But the steering body met only once in a year.
The last meeting of the steering body was held in Dhaka in May last and the next meeting was supposed to take place in New Delhi in January or February in 2012. But Indian Power Ministry officials have not yet informed about the meeting.
A loan of about US$ 100 million from the Asian Development Bank remained stuck up for non-settlement of the power tariff with India.
The release of the fund depends on the signing of agreement with India,
India had initially proposed that the electricity tariff will be fixed by Indian Central Electricity Regulatory Commission (CERC) while the construction of the power transmission line will be completed in December 2012.
But Bangladesh did not agree to accept CERC's dominant role in fixing the tariff. Instead, it wanted both sides to fix the tariff through discussion and both sides should have similar authority.
During their last visit to New Delhi, Bangladesh officials raised the issue and sought the Indian consent on Bangladesh stance. But the Indian side failed to make clear their position on the matter. Until the issues of power tariff and power plant for power supply are settled, Bangladesh would not sign any agreement, said a top official of the Power Ministry.
According to other sources, Bangladesh still does not know from which power plant India will supply electricity. Even, it is not clear what will be the transmission cost for the import.
Under the present Indian proposal, the CERC will determine from which power plant the Indian government will supply the power to Bangladesh Power Ministry officials said Bangladesh has repeatedly asked the Indian side to let it know about the matter. But, so far there is no response. They said the location and specification of power plant are very important because the cost of electricity production and transmission depend on these two matters.
In the proposed import of electricity, the officials said there is some progress on the issue of transmission. Under a transmission agreement with the Power Grid Company of Bangladesh (PGCB), a 107 km 400-kV power transmission line from Indian Baharampur to Bangladesh ' s Bheramara are not being built along with two power stations at both ends.
Of this line, an 80 km transmission line will be installed on the Indian side while a 27 km line on Bangladesh side. The Power Grid Corporation of India Limited (PGCIL) is implementing the 80-km transmission line.
Similarly, the Power Grid Company of Bangladesh is implementing a project to build the substation and the 27-km line at a cost of Tk 10.47 billion. The substation alone needs Tk 8.50 billion.
But other than the transmission line nothing is clear to Bangladesh about the costs of different matters, the officials said.