Bangladesh Cabinet Approves Proposals to Import More Energy from India, Build Railway

12 April 2018

The Government of Bangladesh's Cabinet Committee on Purchase approved a proposal to import 500 megawatts (MW) of electricity from India from June 2018 to May 2033 to help meet the country's energy demand.

Two companies, NTPC Vidyut Vyapar Nigam (NVVN) and PTC India, will export the 500 MW electricity to Bangladesh. NVVN will export 300 MW to Bangladesh at a cost of $0.0566 (Tk 4.7148) kilowatt per hour (kW/h) from June 2018 to 31 December 2019, and $0.0779 (Tk 6.4891) kw/h from 1 January 2020 to 31 May 2033. PTC India will supply the remaining 200 MW of electricity for $0.0584 (Tk 4.8647) kW/h from June 2018 to 31 December 2019, and $0.0786 (Tk 6.5474) kW/h from 1 January 2020 to 31 May 2033.

The 500 MW energy trade contract between the Governments of Bangladesh and India from 2013 is set to expire in June. Plans to purchase more electricity from India is underway.

The Cabinet Committee on Purchase also cleared a proposal appointing Texmaco Rail and Engineering from India to build the dual gauge rail line from Akhaura (Bangladesh) to Agartala (India) for Bangladesh Railway for around $29 million (Tk 2.41 billion). Total project cost is around $57 million (Tk 4.78 billion), and is expected to increase trade between Bangladesh and India.

 

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