The power-starved Bangladesh has extended 250MW power purchase agreement with India by another six months. The deal expires this month.
The cabinet committee on public purchase, presided over by Finance Minister AMA Muhith, approved the Bangladesh Power Development Board’s proposal for extension of three years deal yesterday.
After the meeting, additional cabinet Secretary Mostafizur Rahman briefed reporters on the cabinet’s decision. He said the new tariff rate has been proposed at Tk6.21 per unit electricity.
Under the existing contract with the Power Trading Corporation (PTC) of India, Bangladesh currently imports electricity at Tk6.3 per unit.
“If the proposed tariff rate is agreed, it will save Bangladesh’s Tk8.17 crore in six months and under the proposed rate, the government will have to pay total Tk648.75 crore,” said Mostafizur.
Since October 2013, India has been supplying electricity to Bangladesh. Earlier, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said Bangladesh planned to import 2,000MW of electricity from India.
At present, Bangladesh is importing a total of 750MW electricity, including above 250MW, from India.