Reliance seeks to sign PPA for Meghnaghat plant next month | 2018-05-17 |

Reliance seeks to sign PPA for Meghnaghat plant next month

Shamim Jahangir     17 May, 2018 12:00 AM printer

Indian Reliance Power Ltd sought to sign the power purchase agreement (PPA) with Bangladesh Power Development Board (BPDB) next month for the 718MW Meghnaghat Phase-1 power plant. 

The Indian firm requested the BPDB officials to coincide the PPA signing with the official launch of the second cross-border power transmission line scheduled for next month in presence of both Bangladesh and Indian premiers.

The second Indo-Bangla power transmission line will be used to import 500 megawatts of electricity from India.

Reliance Power Ltd representative Sameer Kumar Gupta last Monday sent a letter to the power division, requesting to arrange the signing ceremony during the inauguration of the Indo-Bangla grid line.

“The Indian authorities are yet to confirm the date of the inauguration,” a BPDB official has said while commenting on the request from Reliance.

The government is planning to purchase 718MW of electricity at a total cost of Tk 5.8498 per unit for a 22-year period from the proposed 718MW LNG-based power plant to be implemented by Reliance Power Ltd at Meghnaghat in Narayanganj.

Reliance Power Ltd proposed the tariff considering tax waiver for 15 years. But the plant is unlikely to commence electricity generation in December 2019, the expiry period of the tax waiver facilities as per the existing Statutory Regulatory Order (SRO).