Indo-Bangla power sector cooperation: A backgrounder

On January 11, 2010, the Government of India and the Government of Bangladesh signed a memorandum-of-understanding (MoU) to enhance cooperation between the two countries in the power sector. The MoU provided for the constitution of a Joint Steering Committee (JSC) and a Joint Working Group (JWG). The JSC is co-chaired by the Power Secretary, H S Brahma, with the Joint Secretary (Transmission), M Ravi Kanth, co-chairing the Working Group, with their respective counterparts in the Government of Bangladesh.

The JSC meeting held on January 12, 2010, in New Delhi, led to the following decisions:

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  Preparation of feasibility report for two coal fired power projects, at Khulna and Chittagong, approximately 1,320 MW each, NTPC may be offered to develop one of these projects, in joint venture with Bangladesh Power Development Board (BPDB).
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  NTPC will be offered to carry out technical assessment of BPDB`s old power stations for efficiency improvement and renovation and modernization.
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  NTPC to provide training to power professionals from BPDB for their development.
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  To start cooperation between the two companies, NTPC offered to take up operation and maintenance of power stations in Bangladesh on nomination, and cost plus basis.
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  To constitute a joint technical team with equal representation from NTPC and BPDB, both sides to firm up the detailed modalities and framework for cooperation in the above areas.
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  Signing of an MoU between BPDB and NTPC, by February 2010.
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  Supply of power from Indian National Grid through the proposed inter-connector between the two countries.
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  Government of Bangladesh and BPDB to explore possibilities of sourcing the power from IPPs, subject to the prevailing policies of both the Governments.

The second meeting of the JWG and the JSC was held in Dhaka, during February 18-19, 2010. The meeting reviewed the progress on various fronts, including the finalization of consultancy for grid interconnection, constitution of a joint technical team for cooperation between NTPC and BPDB, technical assessment of old power stations for R&M and efficiency improvement, evacuation of additional power, amongst others, and suggested ways forward on these issues.