India and Bangladesh Mulling Coal Based Power Generation, 1320 MW Coal Fired Power Plant in Khulna, India and Bangladesh Agreement on 1320 MW Coal Fired Power Plant in Khulna

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SME Times News Bureau | 22 Jun, 2010
A Bangladeshi team left for New Delhi Monday to negotiate final terms of a draft agreement with India to set up a 1,320 MW coal-fired power plant in Khulna and a cross-border transmission line to import 250 MW power from West Bengal.

A high-powered committee headed by Finance Minister A.M.A. Muhith Sunday finalised Bangladeshi terms and conditions that should be accommodated in the agreement.

India has already sent a draft agreement outlining that National Thermal Power Corporation (NTPC) would manage and finance the two-unit coal plant in Khulna that would be jointly built with the Power Development Board (PDB).

Under this joint venture, the board of directors will be headed by Bangladesh, while the number of NTPC representatives will be higher than those of Bangladesh by one.

The high-powered committee decided to propose to India that the Bangladeshi share in this plant would increase gradually. "The NTPC has the experience and finances to build and operate large coal plants. So we expect the NTPC to finance and manage the project."

"But we want to increase our shares in the operation gradually," a meeting source told The Daily Star.

Muhith told the press, "We have discussed the nitty-gritty [of the draft agreement and the power transmission line], how the contracts should be framed and the terms for the coal [plant]."

"We have signed a memorandum of understanding [MoU] with India. Now they have sent a draft agreement. We are scrutinising its terms," he added.

India is setting up an 85 km transmission line at its own cost across the border.

Meanwhile, PDB is acquiring around 1,800 acres of land opposite to Mongla port, keeping in mind that huge quantities of coal would have to be imported through the Bay of Bengal.

Bangladesh signed several MoUs with India Jan 3 this year which include one on power import and setting up the coal-based power plant under a government-to-government joint venture.