NTPC Plans Project in Bangladesh

Power generating navratna public sector undertaking (PSU) National Thermal Power Corporation (NTPC) is intending to set up its first power project abroad in Bangladesh. The size of the proposed power project will be 1000-megawatt natural gas-based power plant and will be a joint venture project with the Bangladesh Power Development Board (BPDB).

NTPC chairman and managing director Rajendra Singh said on Friday that surplus power from this project could be transferred back to India. NTPC recently conferred with the navratna status, is empowered to set up joint ventures abroad, which will enable it to earn foreign exchange.

The proposal follows an international workshop by Federation of Engineering Institutions of South and Central Asia, which was held in Dhaka in August. The conference that discussed improving the availability of power in South Asia, led to NTPC exploring possible business opportunities in SAARC countries, especially Bangladesh.

NTPC intends to form a joint venture wherein, it will set up power station in Bangladesh on “build and own operate” basis. It has proposed BPDB as the joint venture partner with nominal contribution to equity. The company envisages participation by financial institutions and proposes a private gas supplier as the other partners. The 1000 mw project would involve investment of Rs. 40 billion ($1 billion) approximately.

NTPC has already held preliminary discussions with Asian development Bank and World Bank for financial support for the project. The company plans to generate 1000 megawatt at various stages beginning with 300-400 mw in the 1st stage. Bangladesh will have the first right of power consumption and the balance can be imported to India.

The proposal is being projected as a SAARC countries development program, for which purpose the company plans to integrate power grids of Nepal and Bhutan.

A joint committee comprising of officials from Bangladesh and India are currently evaluating the prospects of the project.