The Indian government has found it fit to designate NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly-owned subsidiary of the NTPC, as an intermediary to facilitate the sale of 250 MW of power promised to Bangladesh. As a central government owned-entity, NVVN is the ideal medium to take on the financial responsibility and provide payment security for the seller in the cross-country deal.
Although the Government of Bangladesh is keen on signing a direct power-purchase-agreement (PPA) with central power generating stations, the Indian government has asserted that the transaction would not be possible in the absence of a power trader. NVVN is to soon provide a draft PPA to the Bangladesh side to take things further. Upon fruition of this deal, Bangladesh would be free to procure an additional 250 MW from any Indian generator.
NVVN was incorporated in November 2002 to tap the power trading market of the country. NVVN commenced trading operations in March 2003, in the form of supply of surplus power from the eastern region stations of NTPC to the Meghalaya and Assam State Electricity Boards. The company was granted a Category-E licence by the Central Electricity Regulatory Commission (CERC) for inter-state trading of electricity in July 2004. The licence was later upgraded to Category-F in March 2005.
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