• Tuesday, Nov 24, 2020
  • Last Update : 06:04 pm

Dhaka, Delhi to sign deals Saturday to set up power plant

  • Published at 08:35 am April 19th, 2013
Dhaka, Delhi to sign deals Saturday to set up power plant


Dhaka and New Delhi will sign three agreements here on Saturday to implement the proposed 1320-MW coal-fired power plant project in joint venture at Rampal, a location close to the Sundarbans.

The deals are Implementation Agreement (IA), Power Purchase Agreement (PPA) and Supplementary Joint Venture Agreement (SJVA).

A five-member Indian delegation, led by Power Secretary P Uma Shanker, is due to arrive in Dhaka to sign the deals, reports UNB.

Indian National Thermal Power Corporation (NTPC) and Bangladesh Power Development Board (PDB) have already formed a special purpose company, ‘Bangladesh-India Friendship Power Company (Pvt) Ltd’, to implement the power plant project.

Both the state-owned companies will set up the power plants on 50:50 equity basis, which will cost approximately US$ 1.5 bn. The project’s lion portion of the fund will be arranged from lending agencies.

Earlier, Bangladesh and India signed a number of initial agreements and memorandum of understandings (MoUs). Both the neighbours agreed to take up such joint venture power plant projects during Prime Minister Sheikh Hasina’s New Delhi visit in 2009.

Initially, both nations have planned to implement the project by 2013. After a long exercise for about four years, now they are going to sign the final agreement to implement the mega project.

“We hope the signing of these deals will give a real boost to the project’s work. Now, we believe, this will create the actual pace to the project,” said Power Ministry’s Joint Secretary Anwar Hossain.

Power Ministry sources said the project’s timeline was rescheduled and targeted to complete the project implementation by 2018.

They said Bangladesh has been eagerly looking for signing the three agreements much earlier. “But the Indian side set new conditions one after another which finally delayed the signing of the deals,” said a top official at the Power Ministry. 

He informed that finally Dhaka accepted all the conditions of New Delhi. Two of the main such conditions are that the Indian side will be allowed to take their profit without any tax.   

Besides, if Indian side relinquish the power project, Bangladesh will have to take over the project without any argument, said the official.

Bangladeshi environmental groups have been vigorously opposing the move for setting up the coal-fired power plants near the world’s longest mangrove forest the Sundarbans as they believe it would immensely destroy the ecology as well as flora and fauna of the country’s main forest.  

blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail