Power Import from India

Bangladesh seeks SD, VAT waiver

Special Correspondent

24 January, 2021 12:00 AM printer

Bangladesh has sought waiver on value added tax (VAT) and supplementary duty (SD) to import electricity from India.

Dhaka made the request at a secretary level 19th joint steering committee meeting between Bangladesh and India on Saturday.

The government has been importing around 1000MW of electricity against the capacity of 1,060MW from India since October 5, 2013 through Bheramara grid line. Of the total volume, 250MW of power comes from Indian state-owned NVVN’s unallocated quota at an average market tariff of Tk 2.78 per kilowatt (per unit).

Besides, another 250MW comes through Indian open market through PTC for per unit tariff at $0.0749.

Now, the country has a capacity to generate 23,777MW of electricity including 2800MW captive power.

Bangladesh Power Secretary Md Habibur Rahman and Indian Power Secretary Sanjiv Nandan Sahai led the teams of both the countries. During the meeting, Bangladesh side also proposed to export its surplus electricity to India and requested to amend the Indian power export and import guideline.

Both sides also discussed joint investment in hydropower plant in Bhutan, said a release. Electricity import from Nepal was also highlighted at the discussion.

Dhaka and Delhi are satisfied with the progress of Rampal power plant.  The installation of second power transmission line between the two countries was also discussed at the meeting.