Electricity import from Indian firm’s Nepal plant cleared

901

The government will have to pay a total amount of Tk38,160.75 crore to Indian firm GMR

December 20th, 2019

The Cabinet Committee on Public Purchase (CCPP) has approved four procurement proposals, including one for importing 500MW electricity from an Indian company’s power plant in Nepal.

The bulk electricity will be imported through another Indian company NTPC Vidyut Vyapar Nigam Ltd (NVVN) complying with the Indian regulatory commission’s terms and conditions, reports UNB.

The committee gave the nod to the proposal at a meeting held with Finance Minister AHM Mustafa Kamal in the chair on Wednesday.

As per the proposal, Bangladesh will import the electricity from Indian firm GMR at a tariff rate of $7.7172 (equivalent to Tk6.4284) per kilowatt hour (each unit) for over a period of 25 years.

For the import, the government will have to pay a total amount of Tk38,160.75 crore to GMR through NVVN.

It was informed that state-owned Bangladesh Power Development Board (BPDB) and the NVVN signed a non-bonding memorandum of understanding (MoU).

Under the Power and Energy Increase of Speedy Supply Act (SPA) 2018, now the BPDB will sign power sales agreement with the NVVN to import the electricity from the GMR.

The committee also approved three other proposals to appoint contractors for electricity network expansion in different divisions under the Rural Electrification Board (REB).

 

Source: Dhakatribune