Indian companies to invest $9 billion in Bangladesh energy projects
Energy is now at the vanguard of New Delhi’s biggest business commitments in its neighbourhood, with power and gas leading the $9-billion investment projects India has proposed to make in Bangladesh to help strengthen Dhaka’s emerging industrial base.
The Reliance and Adani Groups, and power behemoth NTPC were among the Indian blue-chip companies that concluded investment proposals on Monday in the presence of visiting Bangladeshi Premier Sheikh Hasina to supply electricity, and enhance power generation in the easterly neighbour. Cross-border power connectivity has emerged as the key bridge of friendship between the two countries over the past few years.
An agreement between Bangladesh India Friendship Power Company Limited and EXIM Bank of India for debt financing of the construction of 1,320 mw Maitree Power Project in Rampal, Bangladesh was signed. The estimated value of the deal is $1.6 billion.
Reliance Power signed an agreement worth $1billion with Bangladesh’s power, energy and mineral resources ministry for the first phase (750 MW) of the 3000 MW power project at a place called Meghnaghat in Bangladesh. Adani Power Ltd. concluded an agreement to supply 1600 MW of power from its plant in Jharkhand to Bangladesh. This would involve a cost of $2 billion.
In what would be a key three-nation cross-border connectivity initiative, NTPC Vidyut Vyapar Nigam Ltd entered a preliminary pact with Bangladesh Power Development Board for supply of power from Nepal. The estimated value of the deal is $3.15 billion, according to an official statement. Both entities also signed another agreement for supply of additional 60 mw of power from Tripura to Bangladesh worth $138 million.
Three preliminary agreements related to cooperation in the field of liquefied natural gas (LNG) were also signed between Indian and Bangladeshi companies.
Petrobangla signed preliminary agreements with Petronet LNG for LNG terminal use, with Reliance Power for setting up 500 million metric standard cubic feet per day LNG terminal at Kutubdia Island, and with Indian Oil Corporation for LNG cooperation.
An agreement between Numaligarh Refinery Limited and Bangladesh Petroleum Corporation for sale and purchase of diesel was also signed.