Indo-Bangla Power Link Possible
Negotiations for the link have been held up as the two parties have not been able to agree on the cost of power.
The Bangladesh Power Development Board (BPDB) sells power at a highly subsidised rate. High-tension industrial consumers pay Taka 2 (Rs 1.60) per unit while other categories pay even less. Bangladesh wants to buy power from India at the rate charged by BPDB from its high-tension consumers.
However, power supplied by India will cost much more. Even the low-priced surplus power in the eastern region exported to Andhra Pradesh is priced at Rs 2 a unit. The rate is slated to go up as soon as the National Thermal Power Corporation signs a direct agreement with Andhra.
The cost of power produced by the barge-mounted gas stations is expected to be at least Rs 3.60 a unit.
The price bid in the global tenders may facilitate Indo-Bangla negotiations, as it may convince the Bangladesh leaders that Taka 2 a unit is too low a price and the rate demanded by India (less than Rs 3.60 a unit) is not too high after all.
The Asian Development Bank (ADB) has offered to mediate an Indo-Bangla meeting on power exchange. The Bank has also offered either its Kathmandu office or the Manila office as the venue for the talks.
ADB had played a similar role in the negotiations for a power exchange link between Laos and Cambodia, which were at war.
A BPDB team had come to India last September to explore the possibility of importing power. The team considered power exchange at three points in West Bengal and Meghalaya and visited a 400-kv sub-station at Jeerat, 50 km north of Calcutta.
However the BPDB team, although it delved deep into the technical issues, did not discuss the commercial aspects in detail as the tariff would require a political clearance.
The team had indicated that the first link could be built between Jeerat and Jessore.
Bangladesh faces a peak shortage of 500-600 mw. The cost of the transmission link between India and Bangladesh is proposed to be funded by ADB. Each country is supposed to construct its own portion of the link and get the finance from ADB.
The gas turbines for which tenders opened yesterday will be treated as independent power producers and the contracts will be awarded on the basis of the lowest tariff quoted.
There are no Indian bidders for the tenders, chiefly because the promoter has to arrange the entire funding.
Sources said Bangladesh may select one or two bidders for the barge-mounted gas turbine stations and also give the green signal for import of power from India. Those who favour import of power from India argue that it will lead to conservation of the natural gas stock in Bangladesh.