Bangladesh to buy 500 MW from India

Bangladesh has signed a deal to buy 250 megawatts of electricity from India's NTPC  as it moves away from producing power using costly imported fuel.

Bangladesh Power Development Board will receive 250 MW electricity from NTPC, and another 250 through competitive bidding, said Mohammed Abul Kalam Azad, secretary of the government power division.

“We will be able to add 500 MW of electricity to the national grid in the middle of next year, through a transmission line now being built with a $150 million loan from the Asian Development Bank,” he told reporters.

This will partly ease the country's daily shortfall of up to 1,500 MW.

“The agreement would stand valid initially for 25 years but its tenure may be enhanced,” Azad said.

Most power plants in Bangladesh are run with natural gas, supply of which is depleting fast, forcing the government to turn to fuel despite its high price in international markets.

Currently, Bangladesh has an installed capacity of producing over 7,600 MW of electricity, which is expected to go up to 21,000 MW by 2021, officials said.

According to Azad, lack of natural gas and the wearing out of plants will keep the country from producing at such leve.

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