India seeks to fund, manage coal power
Monday, June 21, 2010
India seeks to fund, manage coal power
Bangladesh wants gradual increase of its stake in joint venture; team flies to Delhi today for agreement on coal plant, power import
Staff Correspondent A Bangladeshi team leaves for Delhi today to negotiate final terms in the draft agreement with India to set up a 1,320 megawatt coal-fired power plant in Khulna and a cross-border transmission line to import 250 MW power from West Bengal.
A high-powered committee headed by Finance Minister AMA Muhith yesterday held a meeting to discuss the Bangladeshi terms and conditions that should be accommodated in the agreement.
India has already sent a draft agreement outlining that Indian National Thermal Power Company (NTPC) would manage and finance the two-unit coal plant in Khulna that would be jointly built with the Power Development Board (PDB).
Under this joint venture, the board of directors will be headed by Bangladesh, while the number of NTPC representatives will be higher than Bangladesh by one.
The high-powered committee yesterday decided to propose to India that the Bangladeshi share in this plant would increase gradually. "The NTPC has the experience and finances to build and operate large coal plants. So we expect the NTPC to finance and manage the project.
But we want to increase our shares in the operation gradually," says a meeting source.
Emerging out of the meeting at the finance ministry, Finance Minister AMA Muhith told the press, "We have discussed the nitty-gritty [of the draft agreement and the power transmission line], how the contracts should be framed and the terms for the coal [plant]."
"We have signed a Memorandum of Understanding [MoU] with India. Now they have sent a draft agreement. We are scrutinising its terms," he added.
Answering to a question whether the cross-border power transmission line would be controlled by India, Economic Adviser to Prime Minister Dr Moshiur Rahman told the press, "We have not seen anything like that in the documents that they sent."
The finance minister then clarified, "They [India] would do their part, we would do ours."
In April, the Power Grid Company of Bangladesh (PGCB) floated a tender to set up a 40-kilometre transmission line in Bheramara with a high voltage sub-station at a cost of $150 million.
The tender evaluation process is now in the final stage and PDB is expected to award the contract soon so that it can be completed within two years.
The power line will have the capacity to transmit 500 MW power.
India is setting up an 85-km transmission line at its own cost across the border.
Meanwhile, PDB is acquiring around 1,800 acres of land opposite to Mongla port, keeping in mind that huge coal would have to be imported through the Bay of Bengal.
Bangladesh signed several MoUs with India on January 3 this year which include one on power import and setting up the coal-based power plant under a government-to-government joint venture.
Monday, June 21, 2010
India seeks to fund, manage coal power
Bangladesh wants gradual increase of its stake in joint venture; team flies to Delhi today for agreement on coal plant, power import
Staff Correspondent A Bangladeshi team leaves for Delhi today to negotiate final terms in the draft agreement with India to set up a 1,320 megawatt coal-fired power plant in Khulna and a cross-border transmission line to import 250 MW power from West Bengal.
A high-powered committee headed by Finance Minister AMA Muhith yesterday held a meeting to discuss the Bangladeshi terms and conditions that should be accommodated in the agreement.
India has already sent a draft agreement outlining that Indian National Thermal Power Company (NTPC) would manage and finance the two-unit coal plant in Khulna that would be jointly built with the Power Development Board (PDB).
Under this joint venture, the board of directors will be headed by Bangladesh, while the number of NTPC representatives will be higher than Bangladesh by one.
The high-powered committee yesterday decided to propose to India that the Bangladeshi share in this plant would increase gradually. "The NTPC has the experience and finances to build and operate large coal plants. So we expect the NTPC to finance and manage the project.
But we want to increase our shares in the operation gradually," says a meeting source.
Emerging out of the meeting at the finance ministry, Finance Minister AMA Muhith told the press, "We have discussed the nitty-gritty [of the draft agreement and the power transmission line], how the contracts should be framed and the terms for the coal [plant]."
"We have signed a Memorandum of Understanding [MoU] with India. Now they have sent a draft agreement. We are scrutinising its terms," he added.
Answering to a question whether the cross-border power transmission line would be controlled by India, Economic Adviser to Prime Minister Dr Moshiur Rahman told the press, "We have not seen anything like that in the documents that they sent."
The finance minister then clarified, "They [India] would do their part, we would do ours."
In April, the Power Grid Company of Bangladesh (PGCB) floated a tender to set up a 40-kilometre transmission line in Bheramara with a high voltage sub-station at a cost of $150 million.
The tender evaluation process is now in the final stage and PDB is expected to award the contract soon so that it can be completed within two years.
The power line will have the capacity to transmit 500 MW power.
India is setting up an 85-km transmission line at its own cost across the border.
Meanwhile, PDB is acquiring around 1,800 acres of land opposite to Mongla port, keeping in mind that huge coal would have to be imported through the Bay of Bengal.
Bangladesh signed several MoUs with India on January 3 this year which include one on power import and setting up the coal-based power plant under a government-to-government joint venture.