India and Bangladesh on 20 April 2013 signed three agreements for a joint coal-based power company project.
National Thermal Power Corporation of India and Power Development Bangladesh signed three agreements on 20 April 2013 in Dhaka, Bangladesh. The agreements were a part of setting up of the biggest ever joint venture project of 1320 Megawatt Coal based power plant. This project is to be developed at an expense of 1.6 billion US dollars.
The pacts three pacts inked for the 1320MW coal-based Bangladesh-India Friendship Power Company (Pvt) Limited (BIFPCL) include:
• Power Purchase Agreement (PPA)
• Implementation Agreement (IA)
• Supplementary Joint Venture Agreement (SJVA)
P. Umashankar, Union Power Secretary of India led the Indian delegation at the signing ceremony of the mega project.
The MoU for India’s cooperation in Power Sector were identified as exchange of power, grid connectivity, energy efficiency and electricity generation with Bangladesh, during the visit of Prime Minister Sheikh Hasina to India in January 2011. In January 2013, NTPC and Bangladesh’s Power Development Board (PDB) signed a Joint Venture Agreement (JVA) with equal equity participation (50:50) for development of power projects in Bangladesh.
This project is proposed to be developed over an area of 1834 acres of land near Mongla Seaport in Rampal Upazila. It is the largest ever foreign investment in the power Sector in Bangladesh as well as the first power plant that is being developed by NTPC outside India. The power plant will be developed with a super critical technology.
As per the environmentalists, the joint-power project will be disastrous to the environment and vegetation of the Sunderbans – the world’s largest mangrove forest. The country has also seen many projects for the cancellation of the project by the Government.