Dhaka, Delhi Agree On 1,320MW Joint Venture Power Plant

Date: 20.02.10
Source: The Daily Star

Dhaka, Delhi Agree On 1,320MW Joint Venture Power Plant

Coal-fired plant to generate power in 3yrs

Bangladesh and India yesterday agreed to form a joint-venture company to set up a two-unit coal-fired power plant of total 1,320 megawatt capacity in Khulna.

The two countries also agreed to establish a cross-border power grid, for which tenders will be invited this month, and the work order will be issued in June this year.

The decisions were taken at the second meeting of the Bangladesh-India Joint Steering Committee on Power Sector which had been formed during Prime Minister Sheikh Hasina's visit to Delhi last month.

Each of the units in the joint-venture power plant will have the capacity to generate 660MW of power using imported coal. National Thermal Power Corporation of India will carry out a feasibility study for the plant this month, and submit a report by July this year to the Bangladesh government while the timeline for finishing the project has been set between 36 and 48 months of issuing the work order.

A bilateral document prior to signing of a memorandum of understanding regarding the matter is expected to be signed today.

At yesterday's meeting the Indian side was headed by its Power Secretary HS Brahma, who had flown to Dhaka on Thursday with a delegation on a three-day visit.

The power secretaries of both countries jointly briefed journalists about the meeting's resolutions at the PDB headquarters in Dhaka.

"We want to gather experience regarding coal based power plants, since in future we will have to set up several such power plants to utilise the coal deposits of the country," said Bangladesh Power Division Secretary Abul Kalam Azad who led the Bangladesh side at the secretary level meeting.

He also said the required investment for the plant will be between $1.5 billion to $1.7 billion. "We are not able to give you the exact figure until the feasibility study is finished," he however added.

Azad said although usually it takes around four years to set up such a power plant, they are optimistic about starting power generation in the new plant within three years of issuing the work order.

Replying to questions from reporters on what will be the unit price of the generated power and what will be the per unit cost of the generation, Azad said that also cannot be determined until the feasibility study is done. He also said coal for the plant will be imported, but from where, that has yet to be determined too.

The cross-border power grid will take two years to be set up after the work order is issued. Forty five kilometres of the power line will be in Bangladesh, and the remaining 85 kilometres will be in India.

"It might be possible to begin importing 250MW of power from India from June 2012," said Azad.

About the per unit cost of importing power from India, its Power Secretary HS Brahma said power will be sold to Bangladesh at the rate paid by the state governments of India, which may range between 2.5 and 4 rupees, depending on factors such as generation cost, and the state where the power is being generated.

The Bangladesh power secretary indicated that the final cost of per unit power imported from India might stand at Tk 3.5 for Bangladesh.

He also said the cross-border power line could be used for importing power from the private sector of India as well, since the agreement allows private citizens and companies of both countries to invest in the power sectors of each other.

Talking at the briefing, the Indian power secretary said he hopes that the cooperation in power sector will be a good step forward for bilateral relations between the two countries.

PDB Chairman Alamgir Kabir, and other senior officials of both countries were also present at the briefing.

                                                              




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