The government is only a step away from importing 250MW from India’s open market at a price much higher than that of the government-to-government deal with the neighbouring country.
“We sent our proposal for buying the power from PTC and it is expected to be discussed in the cabinet committee on purchase for approval tomorrow [Sunday],” Monowar Islam, Power division secretary said on Saturday.
A top official of the Power Division who asked to remain anonymous said Power Trading Corporation (PTC) India Limited, one of India’s state-owned power trading agencies, won the bid contended by Vidyut Vyapar Nigam Limited (NVVN). NVVN’s proposal was not considered due to “non-responsive bidding.”
An official of the Power Development Board said this would be the first time Bangladesh imports power by opening letters of credit. “PTC India Limited will supply electricity to Bangladesh for three years from India’s NTPC power plants in West Bengal and Eastern Region at a per-unit tariff of Tk6.35 plus a Tk0.31 wheeling charge,” he said.
The official said because the power was being procured from the open market, the tariff was higher than the Tk4 per unit plus Tk0.80 wheeling charge negotiated under the government-to-government deal with India.
He said the agreement’s tenure could be extended on mutual understanding and that the power tariff could be fixed under the same conditions.
Bangladesh invited bids in mid-April in 2012 to purchase electricity through competitive bidding in the Indian open market.
However, despite repeated deferment of bid submission deadlines, no private companies showed interest. The Power Division then sought direct offers from state-owned companies where PTC India Limited and NVVN contended.
Bangladesh undertook the project to import electricity from India to reduce the country’s power crisis. A memorandum of understanding was signed between Dhaka and New Delhi in 2010.
However, the July deadline to import power under the government-to-government deal was not met because the work was not completed on the Indian side to set up the transmission link between Baharampur in Pashchimbanga’s Murshidabad district and Bhermara in western Bangladesh’s Ishwardi-Kustia district.
