Deals signed to import power from Adani Group | 2017-11-09 | daily-sun.com

Deals signed to import power from Adani Group

Staff Correspondent     9 November, 2017 12:00 AM printer

Deals signed to import power from Adani Group

The government recently signed two deals -- power purchase agreement (PPA) and Implementing Agreement (IA) -- with Indian giant power conglomerate Adani Power Ltd for importing 1600MW of electricity.


Power Division Joint Secretary Faizul Amin, Bangladesh Power Development Board (BPDB) Secretary Mina Masud Uzzaman and Adani’s Business Development President Kandarp Patel signed the agreements on Sunday.


Earlier, the Power Division proposed to sign the deal in the middle of the current month, but it was signed before the schedule as the Indian group was insisting to sign the deal earlier. Most of the top and senior officials of the power division were unable to attend the singing programme due to constraints of time.


The group’s wholly-owned subsidiary company Adani Power (Jharkhand) has signed a long-term power purchase agreement (PPA) for the net capacity of 1496 MW with Bangladesh Power Development board for 25 years, according to a company document submitted to Bombay Stock Exchange.


The power supply under the PPA will be made from a new 1600 MW ultra-supercritical coal-based power plant to be set up by Adani Power (Jharkhand) at Godda, Jharkhand.


Bangladesh will import the electricity from the Adani Power Limited-sponsored 1600MW plant at Jharkhand paying 8.612 US cents (Tk 6.890) per unit for a 25-year period, officials confirmed. Bangladesh is now importing 640MW of electricity from India at Tk 4.92 per unit on average.


The government signed a Memorandum of Understanding (MoU) on August 11, 2015 with the Indian firm to import electricity.  The Indian company said it would invest $2.12 billion to set up the proposed power plant in Jharkhand with a view to exporting 1600MW of electricity to Bangladesh.

 

The company is hopeful of installing the first unit of the plant within 44 months and the second unit within 50 months after signing a contract.  

 


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