Energy-starved Bangladesh will the import 250-megawatt electricity as per the agreement. In future there is likelihood for the country to export power to India.
The agreement is considered landmark since many bilateral proposals like gas pipeline and private sector TATA ventures did not take off since the last several years.
The import of power is expected to start in two years. The state-run Bangladesh Power Development Board (BPDB) signed the deal with Power Grid Corporation of India Ltd (PGCIL) at a ceremony in Dhaka on Monday. The agreement keeps the provision for Bangladesh to export power to India in the future while PGCIL was tasked to construct, own, operate and maintain a 400-KV double-circuit line to exchange 500-MW power between the two neighbouring countries soon after the system is launched.
According to the agreement, the transmission tariff will be fixed later by the Energy Regulatory Commission of West Bengal while BPDB will pay the transmission tariff on a monthly basis. Under the deal PGCIL will invest and construct 80 kilometer transmission line and own, operate and maintain it.
The Indian part of the infrastructure will also include a 400 KV switching station at Baharampur, loop-in and loop-out of Farakka-Jeerat 400 KV single circuit line at the same place, and a 400 KV double circuit line from Baharampur of India running up to Bheramara in Bangladesh.
According to the agreement, PGCIL will invest and construct 80 km of transmission line and own, operate and maintain it. The Indian company will recover the construction cost under a fixed rate over 35 years. BPDB officials said PGCIL will incur a cost of about 80 crore Indian rupees.
During the tenure of the agreement, if any other beneficiary in either country uses the line, the beneficiary will proportionally share the transmission charges. In case of disputes, the parties will first try to settle the issue mutually through discussions, but if not settled within three months, the matter will be referred to the governments.
This cooperation will not only benefit both the countries but also usher regional linkage at a later stage. The North Eastern region will benefit most because of the proximity to Bangladesh.
