Another 300MW on way from India

The cross-border power trading arm of India's state-owned National Thermal Power Corporation has won a contract for supplying 300 megawatts to Bangladesh for fifteen years.

The power supply is expected to start from June this year, said a statement from the NTPC, the country' largest power generation firm.

As per rough calculations, the estimated tariff of the power to be supplied to Bangladesh is pegged at Rs 3.42 per unit. The deal will help the NTPC earn Rs 900 crore every year, the statement said. 

NTPC Vidyut Vyapar Nigam Ltd (NVVN) will supply the power to the Bangladesh Power Development Board in both short-term and long-term categories, it said.

At present, India supplies 660MW to Bangladesh through two separate cross-border grids -- one in West Bengal and another in Tripura -- under government-to-government deals. NTPC is already a partner in the controversial 1,320MW thermal power plant in Rampal.

The NVVN won the contract by beating two leading power trading companies of India. This is the second time a state-owned Indian power entity has won a contract to supply electricity in Bangladesh.

In 2013, Power Trading Corporation of India secured a similar cross-border supply contract in West Bengal.

Meanwhile, Indian Power Minister RK Singh has said the government is planning to send teams to neighbouring countries like Bangladesh, Sri Lanka and Myanmar to assess the demand for “cheaper” export of power where per unit of generating electricity is “very high”. He also exhorted NTPC to become India's power sector multinational by setting up power plants in other countries and become world's largest power producer.

Singh said there was huge opportunity to export cheap power to neighbouring countries which will be beneficial for the entire region, according to a statement issued by the power ministry on Tuesday.