Striking power memo penned

Dhaka has signed a memorandum of understanding (MoU) with Delhi seeking open-ended import and export of power with the option to purchase power from both public and private sectors of India, said a top official of the Power Development Board (PDB).

This means, if materialised, the MoU would allow Bangladesh to import not just 100 megawatt power as was proposed earlier, but 400-500 MW in the near future. Similarly, it allows the PDB to sell power to India when it has surplus. This option was created keeping in mind future development of the power sector.

Power deals can be framed both on short-term or long-term basis as is found convenient for the two countries.

If the MoU is approved by the cabinets of both the countries, it will take at least two years to install equipment for interconnectivity between them, said the official.

Officials of the two countries have identified Ishwardi as the best point in Bangladesh, and Bahrampur in India's West Bengal state where interconnectivity can be set up at the earliest possible time.

A four-member Indian team headed by a joint secretary of the power ministry, now visiting Dhaka, has held meetings with the Power Grid Company of Bangladesh (PGCB) and the PDB in this connection. Their visit is a follow-up of the visit of a Bangladeshi team headed by the power secretary between November 18 and 22 during which the MoU was signed.

Following lengthy meetings, Indian and Bangladeshi officials decided to form a technical team for further discussion and review of how the interconnection would be built and how transmission between the power grids of the two nations would be synchronised.

The MoU also allows joint venture power projects between the PDB and the government-owned National Thermal Power Company (NTPC) of India. Such joint venture would allow the two national companies to jointly set up power plants both in India and Bangladesh.

“PDB will be allowed to take price quotations from both the private sector and the Power Trading Corporation of India,” said the PDB official.

Private companies like Tata or Reliance groups are presently implementing several power projects. Within two years, India would be in a position to export around 500 MW power to Bangladesh.

“If we purchase coal-fired power from India, the price would come around Tk 3.50 per kilowatt hour after including wheeling and other charges. The price is much lower than that of power from a local furnace oil-fired or diesel-fired power projects which will cost between Tk 7 and Tk 14 per kilowatt hour,” he added.

“This MoU is a breakthrough. It is a clear sign that when there is a positive political will in the two countries, we can have deals that are good for both.”

The official mentioned that the Indian side warmly opened up arms regarding sharing of power. “At ground level we have never experienced so much cooperation from India.”

He went on, “The MoU is also good from the point of view of energy security. All developed nations like those in North America or in Europe have such exchanges. This will allow us to import power when we have energy crisis and export when we have surplus as in the American or European countries.”

Besides, the MoU will allow cooperation between the PDB and NTPC in developing human resources. The NTPC would provide technical and management training to PDB staffs in plant maintenance and operation.

The NTPC that presently deals with 30,000 MW power is set to increase its generation capacity to 70,000 MW within a few years. As a state-owned company, it has reputation in the power sector of India.