2 power plants deal signed with Delhi Joint initiatives in Ctg, Khulna eye 1,320MW electricity from coal; the 2 nat'l companies may venture into power deals in both countries

Two national companies of Bangladesh and India yesterday signed a Memorandum of Understanding (MoU) for setting up two coal-fired power plants of 1,320 megawatts each in Chittagong and Khulna under a joint venture. The MoU also seeks the two companies' cooperation with each other in development of renewable energy. This cooperation deal would allow Bangladesh Power Development Board (BPDB) and National Thermal Power Corporation (NTPC) of India to go for joint ventures in other power projects in both the countries in the future. Such projects could encompass joint ventures in hydropower or renewable energy sector, said Indian power ministry officials. This MoU is preceded by a power exchange agreement signed between the two countries in July under which Bangladesh would import 250MW power within two years -- with the provision to export power to India in the future. BPDB Chief Engineer (generation) Abul Kashem signed the deal on behalf of Bangladesh with the NTPC at the latter's office in the morning. Bangladesh High Commissioner to India Tariq A Karim and Indian Power Secretary P Umashankar were present on the occasion. Under the MoU, an eight-member board of directors will manage the joint venture with Bangladesh as its chairman and an NTPC representative as the managing director for the first eight years before switching over to three-year rotational system. The two countries will by rotation hold the posts of chairman and managing director for a period of three years, said the MoU. Bangladesh and India will have an equal number of nominees -- four each -- in the board. The two power plants, to be set up at a cost of Rs 13,200 crore (2.78 billion US dollars) with 50:50 equity, are likely to be operated by India. The agreement also envisages Indian assistance to Bangladesh in power generation and transmission, energy efficiency as well as in development of renewable energy, consultancy services, research and development of human resources in power sector and enhancement of productivity. The MoU is the culmination of the decision on cooperation in power sector taken during Bangladesh Prime Minister Sheikh Hasina's India visit in January this year. The power sector cooperation was high on Hasina's talks with her Indian counterpart Manmohan Singh and the Joint Delhi Declaration issued at the end of the visit. The MoU does not mention where high-quality coal for the proposed power plant in Khulna will be sourced but it is planned that the project would use coal imported through the sea from countries like Indonesia or Australia which have very little ash content and poses much less damage to the ecology. To set up the coal fired power plants, the BPDB is acquiring 1,200 acres of land near the Chittagong coast beside the Chittagong Urea Fertiliser Ltd (CUFL) and 1,800 acres in Khulna, opposite to the Chalna port. NTPC, India's largest power generator, is already in talks to acquire coal mines or coal blocs in Australia, Indonesia, South Africa and Mozambique as part of its efforts to augment its capacity by 22,430MW in the next few years. The BPDB's four-member delegation, which reached the Indian capital last week, visited some NTPC power plants in the last three days, before signing the MoU. Later yesterday, it flew back to Dhaka.