PTC inks $1.8 billion power supply deal with Bangladesh2 min read . Updated: 10 Oct 2018, 08:25 PM IST
The power purchase agreements were signed between PTC and the Bangladesh Power Development Board on 9th October
New Delhi: In what is likely to add heft to India’s energy diplomacy efforts, PTC India Ltd will supply 200 megawatt (MW) to Bangladesh, the Indian firm said in a statement on Wednesday.
The power purchase agreements (PPAs), which will net PTC $1.8 billion, were signed between the power trading firm and the Bangladesh Power Development Board (BPDB) on 9th October.
“The transaction is expected to give export earning of $1.8 billion over its contract period," the statement said.
India has been playing a key role in creating a new energy security architecture for its neighbours against the backdrop of China’s Belt and Road initiative aimed at connecting countries across Asia, Africa and Europe.
Cross border energy trade is a key part of Prime Minister Narendra Modi’s South Asia-focused neighbourhood-first policy. Also, Bangladesh has been looking at India to meet its ambitious target of providing ‘electricity to all’ by 2021.
“PTC India is already supplying 290 MW power to Bangladesh, has signed two new agreements for 200 MW on short and long term basis for 15 years. The short-term power for 200 MW is from the power pool of West Bengal State Electricity Distribution Company Ltd (WBSEDCL).The long-term power will be supplied through imported coal project of Meenakshi Energy Ltd," according to the statement.
As part of India’s strategy of playing a key role in creating a new energy security architecture for its neighbours, 660MW is currently being supplied to Bangladesh.
India and Bangladesh last year signed two lines of credit worth $5 billion during Sheikh Hasina’s visit to India. During the visit, Modi highlighted energy security as an important dimension of India-Bangladesh ties and said he planned to add another 500MW under an existing transmission link.
“This transaction is another step towards a regional market for power that will aid closer cooperation among our neighbours for energy security," PTC India said in a statement quoting Chairman and Managing Director Deepak Amitabh.
This comes in the backdrop of India pitching for a global electricity grid at the first general assembly of the International Solar Alliance (ISA) last week. India has also been championing for a South Asian Association for Regional Cooperation (Saarc) electricity grid that envisages meeting electricity demand in the region.
Mint reported on 12 July about Bangladesh’s plan to wheel power from projects being set up in India across fuel sources to help meet its energy demands, quoting Ahmad Kaikaus, secretary, power division, Bangladesh’s power, energy and mineral resources ministry.