$1.41 billion credit under Indian LoC 3, for building & expanding 400 kv transmission grid

[Dot]

The government will build a transmission grid for electricity distribution from Rooppur nuclear power plant under a US$1.41 billion project, mostly financed from an Indian credit line.
Officials said Friday the highest amount of funds, nearly $1.0 billion, would be spent from the latest Indian Line of Credit (LoC) worth US$4.5 billion on this project.
They said the Power Grid Company of Bangladesh (PGCB) has already taken up the project for installing the transmission grid for evacuating electricity from the under-construction nuclear power plant.
"The $1.0 billion worth of funds from the total $4.5 billion Indian LoC-III will be the single highest investment in a project. Out of the proposed 17 projects under the LoC-III, the expenditure for the Rooppur power- evacuation scheme will be the highest," a senior Power Division official told the FE.
He said since the government with the financial and technical supports of the Russian government is constructing the 2X1200-megawatt (MW) nuclear power plant at Rooppur in Pabna, a high-voltage transmission line is required to be installed for evacuation and supply of the nuclear power.
The first 1200MW unit of the plant is expected to commence in October 2022 and another planned 1200MW unit by 2024.
In April 2017, India confirmed its $4.5 billion LoC-III for financing 17 development projects in Bangladesh.
Earlier, New Delhi had confirmed $862-million fund under its LoC-I and $2.0 billion under LoC-II for bankrolling Bangladesh's infrastructure development in 2010 and 2016 respectively.
According to the PGCB, it has planned to install the 400-kilovolt (kv) high-voltage double-circuit power grid under the proposed $1.41 billion (Tk 113.53 billion) project by December 2022.
"We have already sent the project proposal to the Planning Commission (PC) for getting approval. Shortly after the approval we will start the construction work," said a senior PGCB official.
He added: "We will lay 609-kilometre 400-kv high-voltage double-circuit power-transmission line from Rooppur to other areas of the country. Besides, we will install 60km 230kv double-circuit transmission line and upgrade 12 bays at different places across the country under the project."
When asked, a senior PC official told the FE that they were scrutinising the Tk113.53-billion-cost project of the PGCB in order to place it before the Executive Committee of the National Economic Council for approval.
The PGCB will lay 154km 400kv double-circuit transmission line from Rooppur to Dhaka (Aminbazar), 51km line from Aminbazar to Kaliakor, 150km one from Rooppur to Gopalganj, 102km from Rooppur to Bogra, and 152km power-transmission grid from Rooppur to Dhamrai.
Besides, 60km-long 230kv transmission line from Rooppur-Baghabari will also be set up under the project.

https://thefinancialexpress.com.bd/...utm_content=4TRADE181136&utm_campaign=REGULAR

 

[Dot]

Although India itself suffers similarly from bureaucratic red tapes & delays that of Bangladesh in processing project files (apart from political motives), nevertheless financing for such capital intensive, extremely high valued projects actually deserves a proper gratitude.

 

[Kaniska]

Although India itself suffers similarly from bureaucratic red tapes & delays that of Bangladesh in processing project files (apart from political motives), nevertheless financing for such capital intensive, extremely high valued projects actually deserves a proper gratitude.

if you really would like to know, the sentiment of people of India and Bangladesh, then you should come out of PDF and interact with some normal people of India...I am from Odisha where i got chance to interact with many BD people in Bhubaneswar..Trust me, eastern part of India in specific Odisha and W bengal with BD has share lot of simillarity which should be used as a tool to interact across the border..Bengali people from BD are considered as our friend but we recognize that there is a economic and political issue of migration of people from BD...

 

[Homo Sapiens]

I don't believe dhokabaj benya will release that amount anytime soon. If my understanding about benya character hold any truth, then expect bharati style foot dragging and variety of excuse for not giving the money as soon as BD undertake the project.Bangladesh have to keep the nuclear power plant idle for many years if it put trust on Indian credit financed transmission line construction.That 5 billion dollar credit was a total farce.It was a total hogwash to show Bangladesh that they can compete(!) with china.But the reality is, India do not have 5 billion dollar to begin with.Do you think India is a type of country which can flaunt 5 billion dollar at it's whim? No, if that was the case then it could have at least build some toilet for the 60 percent of it's people who shit on the street.

 

[gslv mk3]

That 5 billion dollar credit was a total farce.It was a total hogwash to show Bangladesh that they can compete(!) with china.But the reality is, India do not have 5 billion dollar to begin with.Do you think India is a type of country which can flaunt 5 billion dollar at it's whim?

How stupid can you ever be ??

 

[Kaniska]

I don't believe dhokabaj benya will release that amount anytime soon. If my understanding about benya character hold any truth, then expect bharati style foot dragging and variety of excuse for not giving the money as soon as BD undertake the project.Bangladesh have to keep the nuclear power plant idle for many years if it put trust on Indian credit financed transmission line construction.That 5 billion dollar credit was a total farce.It was a total hogwash to show Bangladesh that they can compete(!) with china.But the reality is, India do not have 5 billion dollar to begin with.Do you think India is a type of country which can flaunt 5 billion dollar at it's whim? No, if that was the case then it could have at least build some toilet for the 60 percent of it's people who shit on the street.

Sometimes, i feel, PDF provides people with your kind of thoughts, such an wonderful oppertunity to express your fanciful thoughts which will be hardly be heard by any people...

Anyway, you have the option to go out of this deal..No one is forcing you to not to abandon the deal..

 

[Dot]

If I remember correctly we have received $200 million from Indian govt. for Padma Bridge project as a grant at the initial stage. Anyways, I am happy that Bangladesh can draw finances from a vareity of sources. We have a huge commitment from China and started to receive part of it lately. Huge credit from JICA and more are on the way for Jamuna Railway Bridge & Jamuna Tunnel. And a generous amount of commitment from Indian govt. too. Well, unlike JICA, both Indian LOCs and Chinese credits are cumbersome to process for obvious reasons. But Indian credits come at a cheaper rate against Chinese ones up till now. Anyways every Buck counts.

 

[Kaniska]

If I remember correctly we have received $200 million from Indian govt. for Padma Bridge project as a grant at the initial stage. Anyways, I am happy that Bangladesh can draw finances from a vareity of sources. We have a huge commitment from China and started to receive part of it lately. Huge credit from JICA and more are on the way for Jamuna Railway Bridge & Jamuna Tunnel. And a generous amount of commitment from Indian govt. too. Well, unlike JICA, both Indian LOCs and Chinese credits are cumbersome to process for obvious reasons. But Indian credits come at a cheaper rate against Chinese ones up till now. Anyways every Buck counts.

For a moment, if we bring a sanity to our discussion, then BD has to understand that a developed BD is always helpful for India...If BD and India relation go to next level, BD can be an engine of growth for all of our development of NE region....BD can market its product and influence with the trade and economics of NE region to sell its own goods...So both nation has to understand each others potential and try to tap it rather than engaged in useless fanciful ideas that Hindus are lower in category than Muslims or vice versa...

If India provides any loan to BD, then it may not be always a pure commercial initiave unlike China which has to provide loan to get profit out of it...So our loans will have less interest than that of the China.

 

[UKBengali]

For a moment, if we bring a sanity to our discussion, then BD has to understand that a developed BD is always helpful for India...If BD and India relation go to next level, BD can be an engine of growth for all of our development of NE region....BD can market its product and influence with the trade and economics of NE region to sell its own goods...So both nation has to understand each others potential and try to tap it rather than engaged in useless fanciful ideas that Hindus are lower in category than Muslims or vice versa...

If India provides any loan to BD, then it may not be always a pure commercial initiave unlike China which has to provide loan to get profit out of it...So our loans will have less interest than that of the China.

Chinese loans are hardly costly at 2% with 5 year grace period.

 

[Kaniska]

Chinese loans are hardly costly at 2% with 5 year grace period.

Again, it is your country so you know what is best for you. But for me, i can provide my perception of what could be the good thing for India with respect to BD...For me, BD and India are planning to have a good relation with mutual respect with each other...If BD feels about loan from India is not benifital, they are welcome to cancel it and get it from China.

 

[UKBengali]

Again, it is your country so you know what is best for you. But for me, i can provide my perception of what could be the good thing for India with respect to BD...For me, BD and India are planning to have a good relation with mutual respect with each other...If BD feels about loan from India is not benifital, they are welcome to cancel it and get it from China.

I do not have a problem getting loans from India. Even if the 8.5 billion US dollars that has been pledged takes another 10 years to be utilised that would make a big difference to BD which has very poor infrastructure currently.
India is doing it because they want BD help as regards connectivity and NE militants, and so looks like a win-win for both countries here.

 

[Kaniska]

I do not have a problem getting loans from India. Even if the 8.5 billion US dollars that has been pledged takes another 10 years to be utilised that would make a big difference to BD which has very poor infrastructure currently.
India is doing it because they want BD help as regards connectivity and NE militants, and so looks like a win-win for bother countries here.

I think, militant issue long resolved. With the support from BD, more or less militancy is on decline. But BD has a great oppertunity to be a driver of economic growth of NE India. And if BD wish to step up its relation with India, then economics or NE India and BD can be integrated to each other which will benifit both nations...

 

[UKBengali]

I think, militant issue long resolved. With the support from BD, more or less militancy is on decline. But BD has a great oppertunity to be a driver of economic growth of NE India. And if BD wish to step up its relation with India, then economics or NE India and BD can be integrated to each other which will benifit both nations...

If India wants good relations with BD for long term it needs to stop doing dumb things like publicly going to Myanmar and supporting savages when they are engaged in ethnic cleansing, and labelling it's Muslims as BD'shis. Hasina is not going to be around for more than the term after the next election.

 

[Bilal9]

The problem is not whether Indians promise the money and/or Bangladesh benefits from it.

The real problem is that the loopholes that come saddled with the Indian contract which stipulates that we have to use expensive and inefficient Indian suppliers. I am not saying Indian suppliers are willfully inefficient, it's just that they cannot and do not have processes and economies of scale the Chinese suppliers can take advantage of. Simply put - Indian suppliers cannot compete with Chinese in India itself.

In India itself, heavy electrical supply companies like BHEL are going begging to private utility companies to sell 3000-5000 MW level power-plants and electrical transmission equipment (substations, transformers etc.) because they simply cannot compete with suppliers from China.

To ask Bangladeshi companies to do anything different would be anti-competitive and ultimately, a crime (in my opinion).

Read this from an Indian himself,

https://www.inc.com/quora/why-india-cant-compete-with-china-in-manufacturing.html

"BHEL ....lost business to Chinese companies as power utility firms such as Lanco, Adani Power, Reliance Power, Vedanta, and JSW went for cheaper imports."

https://qz.com/1049737/bhel-the-indian-governments-heavy-engineering-jewel-is-in-trouble/

 

[Kaniska]

If India wants good relations with BD for long term it needs to stop doing dumb things like publicly going to Myanmar and supporting savages when they are engaged in ethnic cleansing, and labelling it's Muslims as BD'shis. Hasina is not going to be around for more than the term after the next election.

Why this condition is critical for India where as BD can have good relation with China although China is the strongest backer of Mynmar regime since long time. Are you going to tone down your relation with China beause they support Mynmar at the expense of BD?

Good relationship requires understanding each others constraint..rather than creating constraint for others...India has no control over Myanmar. So why should India try to make a policy for Myanmar which is another neighouring country like BD when we are not directly impacted due to this problem...And again, did BD switch off teh relationship with Myanmar because of Rohingya issue?