Indo-Bangla power sector cooperation-I: Delay in GoB's approval hampers NTPC-BPDB MoU

The much-awaited memorandum-of-understanding (MoU) between the state-run NTPC and the Bangladesh Power Development Board (BPDB) is yet to be signed, as the Cabinet of the Government of Bangladesh (GoB) has held up its approval, a matter of worry for the Indian power major, whose other foreign venture in the South Asian region-- the 500 MW Trincomalee thermal power project (TPP) in Sri Lanka-- is also stalled pending finalization of the implementation agreement. The MoU, which has already been approved by the Boards of, both, NTPC and BPDB, was scheduled to be executed on April 12, 2010. A high level NTPC team went to Bangladesh last month to execute this pact, but had to return disappointed.

Earlier, in January this year, NTPC had submitted an offer to the GoB-run utility for conducting feasibility studies for two coal based power plants, one at Chittagong and other at Khulna, with the capacities of 1,000-1,320 MW, each. On the invitation of BPDB, a technical team from NTPC also visited Bangladesh, and examined the proposed sites at Khulna and Mongla. The group also held detailed discussions with BPDB and other authorities in Bangladesh, on related aspects.