logo

Procedural bottlenecks to delay power import from India

FE Report | Tuesday, 8 March 2011


FE Report
Electricity import from India might be delayed by several months from the original schedule of commencement due to some 'procedural bottlenecks', Power Secretary Abul Kalam Azad said following a marathon meeting with his Indian counterpart Monday. "We may get the imported electricity by March 2013 instead of the previous schedule of December 2012," he said at a joint press conference after a meeting of the third joint steering committee (JSC) of Bangladesh and India over power sector cooperation. Mr Azad, however, did not elaborate the bottlenecks, but said an agreement on the electricity import will be signed this month. Moreover, tariff rate of the power to be imported from India is yet to be fixed. "The rate will be fixed by Central Electricity Regulatory Commission of India," Indian Power Secretary P Uma Shankar clarified. Bangladesh and India signed a memorandum of understanding (MoU) in January under which Bangladesh will initially import 250 megawatt (MW) of electricity. A joint-venture agreement between state-owned Bangladesh Power Development Board (PDB) and Indian National Thermal Power Corporation (NTPC) will be signed in June next for setting up a 1,320 megawatt (mw) coal-fired power plant in Khulna, Mr Azad said. A 14-member Indian delegation led by the Power Secretary, and NTPC's Chairman and Managing Director Arup Roy Choudhury is now visiting Bangladesh to move forward the power sector cooperation between the two countries. "The bilateral discussion was satisfactory and fruitful," said the Bangladesh Power Secretary. "We have already finalised the terms and conditions of the proposed power purchase agreement (PPA)," he added. Pointing to the progress work in electricity import, he said awarding of contracts for construction of a 110 kilometre power transmission line and setting up a power sub-station are now at final stage. Mobilisation of fund worth around $400 million has also been completed, he said. "NTPC has completed the feasibility study for setting up the 1,320mw coal-fired power plant in Khulna. The report will be submitted within the next couple of weeks," said Mr Azad. During the press briefing, the Indian Power Secretary avoided responding to queries over regional power cooperation and electricity import from Bhutan to Bangladesh. "At this stage we are here to discuss the issues of bilateral power cooperation," Mr Shankar responded. He also said although India has shortage of energy and coal, exporting 250 mw of electricity to Bangladesh will not be a problem.