Crucial Indo-Bangla ministerial-level talks in Delhi Oct 5

Premium issues are likely to dominate the ministerial-level talks between Bangladesh and India that is schedule to be held at New Delhi on October 5.
A-19 member delegation lead by the State Minister for Power, Energy and Mineral resources will be visiting India from October 2 to discuss premium issues of diesel import from Numaligar in India (through a proposed 130-kilometre long Indo-Bangla friendship fuel pipeline), import of liquefied Natural Gas, setting up of super thermal power plant at Rampal, power import from India and hydroelectricity power import from Nepal, according to sources in Power and Energy Ministry.
State Minister Nasrul Hamid and Indian High Commissioner in Dhaka Harsa B Shringla fixed the agenda of the meeting recently.
"Both the Power and Energy Secretaries were present at the meeting and the officials concern discussed the talking points of the bi-lateral meetings with his counterpart at New Delhi on October 5," a senior official told the Daily Observer on Thursday.
 The governments of Bangladesh and India will settle premium issues next month (October 2016) for installation of 130-kilometre long Indo-Bangla Friendship Fuel Pipeline for importing one million tonnes of diesel from Indian NRL owned by Bharat Petroleum Corporation Ltd (BPCL).
Bangladesh Petroleum Corporation (BPC) and NRL are yet to reach any consensus over premium. State-owned BPC suggested the government to set premium at US$1.78 on import of each barrel of oil against India's proposal for $9.
In line with the Bangladesh and India decision BPC will install the 130-kilometres long Indo-Bangla Friendship Pipeline.
"As per the recommendation, the project tenure for fuel supply between Siliguri in Assam and Parbatipur of Bangladesh has been set for 20 years. Besides, the team (a technical team was formed to oversee the premium issue) suggested for setting $5.73 per barrel premium if Indian company NRL agrees on making 100 per cent investment on pipeline of the much-talked-about project. Of the $5.73 premium, the BPC proposes maximum $2.70 as international premium rate and the rest $3.03 as the cost recovery for the pipeline," a senior official of BPC said.
"BPC will be able to save around Tk 1,000 crore if the Indian counterpart agrees on Dhaka's proposal, on the other way if Bangladesh approves the Indian proposal then BPC will lose a huge amount of money," the official added.
He said the BPC would be in 'no loss no gain' position if the Indian counterpart allows premium at $6.0 per barrel.
Presently, BPC is paying $2.37 (the minimum premium) for diesel import from Singapore and for Middle East countries it has takes the open bidding method. It said maximum $4.0 per barrel premium would require transporting diesel through railway between Chittagong-Parbatipur and Chittagong-Khulna. The committee will also take into account the pipeline transit loss of 0.10 per cent, straight line depreciation, 10 per cent interest on fund mobilization, 20 years project tenure for transporting 1.0 million tonnes of diesel that is major consumption of the country for mainly irrigation purpose and transport sector. The pipeline construction would require over Tk 614 crore with an interest of Tk 114 crore on funding the project.
"We are under huge pressure to agree to this proposal, let us see," an official said.
According to the sources in Power and Energy Division, Nasrul Hamid will visit a Adani's project at Dahej and discuss the hydro electricity import from Nepal, however, this meeting will also settle the another 500 MW electricity import from the private sector of India.
"Recently, the Indian Parliament has passed the related bill in this regard," official said.