[ALOCHONA] Power Ministry finding India's conditions tougher than first thought

Power Ministry finding India's conditions tougher than first thought

Dhaka, June 20 (UNB) -Power Ministry officials are now finding the conditions set by India officials for Bangladesh to import power from them, as well as for setting up two coal-based power plants here, are significantly tougher than initially thought.

Bangladesh signed a number of memorandums of understanding (MoU) with India on January 3 this year, one of them on importing about 250 MW of electricity from the neighbouring country. It was also agreed to set up the two coal-based power plants under a joint venture between the two countries.

Each of the two plants will be of 650 MW capacity, with the first one being set up in Khulna, and the second one in Chittagong.

As per the agreement, the state-owned PDB will import electricity from India's state-owned NTPC, while the Power Grid Company of Bangladesh (PGCB) will construct the required transmission lines to facilitate import in cooperation with its Indian counterpart, the PGCIL.

The coal-based power plants would be set up by the PDB in collaboration with the NTPC.

Following the agreement, the Indian side sent Bangladesh some detailed draft agreements on these two issues.

While scrutinising the drafts, Bangladeshi officials found most of the conditions set by the Indian side are tougher than what had been understood during the signing of the MoUs.

To deal with the matter, the Bangladesh government has already formed a high-powered advisory committee headed by Finance Minister AMA Muhith.

Planning Minister AK Khandaker, Prime Minister's Economic Affairs Advisor Dr. Mashiur Rahman and Prime Minister's Advisor Dr. Towfiq-e-Elahi Chowdhury are other members of the advisory committee, which has been set up at the Finance Ministry.

To tackle these hurdles from the Indian side while finalising the draft agreements, the Power Ministry official stoday (Sunday) met the members of the advisory committee at the finance ministry.

Power and Energy Minister M Enamul Haque, Secretary Abul Kalam Azad and PDB Chairman ASM Alamgir Kabir, as well as other officials from the Power Division were present at the meeting.

After the meeting, Finance Minister AMA Muhith said the Power Ministry officials apprised the committee on the progress on each front.

"We discussed the nitty-gritty of the draft agreements offered by the Indian side," he told reporters after the meeting.

The finance minister, however, categorically denied the conditions set in the draft agreement offered by the Indian side are tougher than first thought.

But official sources said the advisory committee discussed the conditions and gave some directives to the Power Ministry officials to deal with the matter.

They said the Indians do not want to involve Bangladeshi officials in the operation and management of the transmission system for importing power, and neither in running the proposed power plants.

The sources also said, as per the MoU, a transmission line will be built from Baharampur in India to Bheramara in Bangladesh. The distance from Baharampur to Bangladesh border is 85 kilometres.

Initially, India will build the 85 km line at their own cost. But Bangladesh will gradually reimburse the cost. Until cost recovery, Bangladesh need not pay any wheeling charges for using the line. But after that, Bangladesh will have to pay wheeling charges to be fixed by the India side.

Secondly, the whole transmission system will be operated and controlled by the Indians.

Officials said that initially, India had agreed that the transmission line would be operated and managed jointly. But they are now backtracking on this.

Similarly, there are some disagreements over the equipment and systems to be used in the transmission line.

Bangladesh officials allege the Indian negotiators had proposed their own choices in this regard, which is not acceptable to Bangladesh as it would mean the whole project cost will ultimately be borne by Bangladesh.

Regarding operation and management of the coal-based power plants, the Indian side tagged a condition that these would remain in Indian hands, although the plants would be built as a joint venture. Moreover, the plant will be built on Bangladeshi territory.

The initial understanding was that although operation and management will remain in their hands in the beginning, gradually some Bangladeshi officials will be engaged in this. But now, the Indians are not being as flexible on this.

"This is definitely a tougher condition for Bangladesh, because they will be on Bangladeshi soil," said a Power Ministry official.

He also said, "We shall propose to engage our manpower in operation and management 5 years from the commissioning date of the plants." The total operation period of the plants will be 30 years.

"We want to develop and engage our people in the power plants along with Indians," the official told UNB preferring not to be quoted.
http://www.unbconnect.com/component/news/task-show/id-23681

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