Proposed JV power plant with India hits snag

FE Report The coal-based 1,320 mega watt (mw) Khulna power plant to be built under a joint venture between the Bangladesh Power Development Board (BPDB) and the India's state-run NTPC Limited (formerly National Thermal Power Corporation) has hit snag over an estimated cost, power officials said Tuesday. The problem sparked as the state-run BPDB was not willing to accept a high cost estimated by the NTPC to set up the giant plant, which might make the electricity produced at the plant dearer. The coal-fired power plant is a part of the government's mega plan to generate 20,000 mw of electricity by 2021, officials of the Bangladesh Power Development Board (BPDB) said. Country's overall current electricity generation is about 5,000 mw against the demand for more than 7,000 mw. The BPDB was yet to approve the feasibility report submitted by the NTPC some six months ago. "However parleys are going on between the two state firms on the plant, but it cannot be said at the moment when it will be finalised," said an official of BPDB. The official did not say what the estimated cost was according to the feasibility study. "The feasibility report suggested a big amount, and the authorities are examining whether they can bear it and expect return, by selling power, which may be dearer," an official of the ministry of energy, power and mineral resources told the FE. The project was mulled during Prime Minister Sheikh Hasina's visit to India in January 2010, and the NTPC proposed for two coal-fired plants each with 1,320 mw capacity to be built in Khulna and Chittagong under joint venture, a month later. A BPDB team has recently visited New Delhi to discuss the issue.