Financial closure for NTPC's Bangla project likely by October

NTPC's joint venture project with Bangladesh Power Development Board (BPDB) for setting up a 1,320 Mw power plant in the neighbouring country is expected to complete the tie-up for funds in 6-8 months.

"Financial closure of the (Bangladesh) project is expected to be completed in 6-8 months' time," an NTPC executive said while talking to analysts and investors.

"For the Bangladesh-India Friendship Power Company Private Ltd (BIFPCL), the price bids for main plant of 2x660 Mw were opened on December 2, 2015. The respective board of Joint Venture Company has consented for issue of NOA (Notice of Award)," he added.

State-run power equipment maker BHEL has emerged as the lowest bidder for the project worth $1.6 billion. It may be awarded the project by the end of this month.

The tender for the project was floated by BIFPCL, a 50:50 joint venture between NTPC and Bangladesh Power Development Board (BPDB).

BHEL has outbid Larsen and Toubro and two Chinese companies to emerge as the lowest bidder for the project called 'Maitree'(friendship).

The joint venture company was incorporated on October 31, 2012.

The proposed project at Khulna in Bangladesh is a coal-based thermal power plant with rated capacity of 1,320 Mw (2x 660 Mw).