Bangladesh moves to purchase power from India’s market

The government has endorsed a proposal to procure up to 50MW power from the open market in India through a third party.

The Cabinet Committee on Government Purchase (CCGP) approved the proposal at a meeting held on Wednesday with Finance Minister Abul Maal Abdul Muhith in the chair.

Under the initiative, India’s state-owned company NVVN will act as Bangladesh’s agent for the power procurement.

It will purchase electricity from small plants in India at the market rate and supply to Bangladesh as per requirement.

The Indian company will get Tk 0.0496 commission for per unit power.

After the meeting Cabinet Division Joint Secretary Mostafizur Rahman told reporter that a one-year contact would be signed with NVVN.

LNG terminal

The committee also approved the ‘term sheet agreement’ signed with Singapore-based Astra Oil and Excelerate Energy Consortium to construct floating liquefied natural gas (LNG) terminal at Maheshkhali.

The government signed the agreement on Jun 26 last year.

Under the agreement, state-owned Petrobangla will have to pay Astro Oil $0.47 for every 1000 cubic feet (Mcf) of gas in terminal construction and other charges.

The gas will be supplied to the national grid through the terminal that will have a daily handling capacity of 500 million cubic feet (MMcf) of gas.

The terminal is scheduled to commence operation by June next year.