Bangladesh is going to extend power purchase deal with India for five years more to get 160 megawatt supply of electricity at Tk 4188.78 crore.
Officials said all is set to extend the deal between Bangladesh Power Development Board (BPDB) and India’s state-owned NTPC Vidyut Vyapar Nigam Ltd (NVVN).
BPDB continued to import the electricity. Officials said the import continued in “good faith”.
Now BPDB is going to extend the deal till March 16, 2026 upon approvalby the cabinet committee on purchase.
Earlier, NVVN proposed for extension of the Power Purchase Agreement.
“We paid Tk 8.05 per unit (kilowatt hour) to purchase 160MW of electricity from March, 2016. Now the cost will come down to Tk7.18 per unit with a trading margin under no-electricity no-pay method,” said an official.
He said the secretary level meeting held in January, 2021 decided the extension of contract to import the power through the Tripura-Cumilla supply line.
Power Division of Bangladesh fixed the import tariff after two separate negotiation meetings in May and June this year. Besides, Bangladesh will need to pay Tk 15.05 million per month as transmission charge to import the electricity.
Now, Bangladesh is utilizing 24 kilometers Indian transmission line and 31 kilometers Bangladesh Power Grid line to import the electricity.
NVVN signed the electricity import deal for supply from Tripura on March 15, 2016.
After a year, in April 2017, BPDB also signed a supplementary deal- Power Purchase Agreement (PPA).
According to the sources,the PPA between Dhaka and Delhi will be effective from the date of singing of the deal and shall remain valid initially up to five years of the date of commencement of the supply unless otherwise terminated earlier. This, however, says that the agreement may be extended beyond the initial period.
The agreement shall be deemed to have come into force with effect from the date of its signing for all other purposes and intents and shall remain operative up to March, 2050 subject to its revision by the parties.
The government currently imports around 800MW of electricity against the capacity of 1,060MW from India since October 5, 2013 through Bheramara grid line. Of the volume, 250MW of power comes from NVVN’s unallocated quota at an average market tariff of Tk 2.78 per unit.
Another 250MW comes through the Indian open market under PTC at per unit tariff of $0.0749.
Now, the country has a grid capacity to generate 20,293MW of electricity.
Of it, the demand falls to around 9000MW duringthe winter.