Bangladesh and India have reached a consensus to examine the power export-import issues between the two countries in a holistic approach on the concluding day of power secretary-level talks.
"We both the countries are ready to expand power exchange programme with our close neighbours Bhutan and Nepal, in line with the idea, we plans to explore the options of power exchange points (areas) for maximum use of our resources," Power Division Senior Secretary Dr Ahmed Kaikuas told the daily Observer on Monday following a Joint Working Group (JWG) meeting of Bangladesh-India power sector cooperation at a local hotel. Kaikuas said, "Bangladesh is now planning to drop the idea to import more power from Tripura-Cumilla point. JWG is examining to tap the hydro power potential of Bhutan and Nepal where Bangladesh would be a partner. So it would be a better option for Bangladesh to make an entry point at the northern part of the country which would be financially viable."
Bangladesh Power Division's Senior Secretary Dr Ahmad Kaikaus and Indian Power Secretary Subash Chandra Garg are leading their respective delegations.
During the meeting, Dhaka has reiterated its request to exempt tax, VAT and Customs Duty (CD) for importing electricity from India.
The Bangladesh delegation also requested for exemption from all financial implications caused by political events and change in the law in India.
Bangladesh has already exempted tax, VAT and customs duty for India for implementing series of public-private projects, including 1600MW Adani coal-fired power plant, Saponji- sponsored power plant and other upcoming power projects.
"However, we did not get any response, the issue would be discuss later," a senior official said.
During the meeting, Bangladesh also proposed to export its surplus electricity to India as a part of power exchange cooperation between two the neighbouring countries, Ahmed Kaikus said.
According to the Power Division, Bangladesh's electricity generation capacity currently stands at 19,000MW. In addition, captive power plants produce another 3,000MW of electricity. Bangladesh now has around 50 per cent surplus capacity against its demand.
Despite surplus electricity, Dhaka continues to import 1140MW of electricity from India and more of electricity import is in the pipeline. on the first day of the meeting, Dhaka has reiterated its request to exempt tax, VAT and Customs Duty (CD) for importing electricity from India.
The exemption of tax, VAT and Customs Duty (CD) to Bangladesh has been hanging in the Indian finance division for several years. Bangladesh was expected to settle the issues during the two days' meeting.
The tripartite agreement on import of electricity from Bhutan also came up for discussed in the meeting. Meeting sources said the next meeting of the JWG will be held in India in 2020.