Deal signed to buy power from India

July 27, 2010

Bangladesh has struck a deal with India for buying power, six months after prime minister Sheikh Hasina signed an agreement with her Indian counterpart Manmohan Singh during the former's visit to New Delhi.

The deal— valid for 35 years — was signed Monday at Hotel Sonargaon between the Bangladesh Power Development Board (BPDB) and the Power Grid Corporation of India Ltd (PGCI). BPDB secretary Azizul Islam and PGCI executive director Arun Kumar signed on behalf of their respective governments.

Finance minister AMA Muhith, prime minister's advisor for energy Towfiq-e-Elahi Chowdhury, power secretary Abul Kalam Azad, energy secretary Mezbah Uddin and deputy high commissioner of India Sanjay Bhattacharyya were present.

According to the deal, Bangladesh would buy 500 MW power from different power plants of India and import it through the PGCI's regional transmission system.

The power would be transmitted through a 400 KV switching station and a 400 KV single circuit line. PGCI will also construct a 400KV double circuit line stretching from India's Bahrampur to Bheramara in Bangladesh.

Initially, 250 MW of power would be available from India, the transmission of which is expected to start in 2012.

The terms and conditions as well as the tariff would be set by the Central Electricity Regulatory Commission of India.

The agreement, however, kept the provision to amend the tariff from time to time, according to a statement provided by the BPDB.

Bangladesh will have to make the payments within one and half month from the date of billing.

India, however, would charge interest in case of delay beyond a grace period of two months.
(news link: http://www.bdnews24.com/details.php?cid=2&id=169058)

Source:bdnews24.com

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