PTC inks $1.8 billion power supply deal with Bangladesh
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.