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Power Sector Development

Talks with India end without settling thorny issues

Published : Friday, 29 September, 2017 at 12:00 AM
The 13th Joint Steering Committee meeting in power sector development between Bangladesh and India has been concluded here on Thursday without settling the tax waiver issue in importing electricity from Adani's power project, allowing multi lateral investment-dialogue in hydro power electricity from Bhutan and Nepal.
Following a 2-days JSC meeting, both the countries agreed that from now on Bangladesh could go for open tender in purchasing power from the Indian private sector.
Both parties agreed to exchange another 500MW power and Dhaka is interested in importing more electricity from India. Power import from India might become costlier if India does not amend its Guidelines on Cross-Border Trade of Electricity, Dr. Ahmad Kaikaus, and Secretary of Power Division to the Daily Observer on Thursday.
"Regarding the renewable energy project at the Rampal area, we asked the concerned people to submit a paper on economical viability of this project," Dr. Ahmad Kaikaus, Secretary of Power Division to the Daily Observer on Thursday.
He said Bangladesh-India power projects have been satisfactory as per present indications; however, we need to work more to implement all other projects as per the schedule to strengthen our bi-lateral ties. Bangladesh's power division secretary Dr. Kaikaus and Indian Power Secretary Ajay Kumar Bhalla lead the Bangladesh and Indian team respectively. Before the meeting, the joint working committee sat to discuss all related issue.
During the meeting Bangladesh Power Division sought tax exemption facilities for importing more electricity from India, however, the Indian official said this issue is related with the finance ministry, "we will convey the intend and later you know the outcome," quoting the Indian official , a source said.
Dhaka is negotiating to import 1600MW of electricity from Adani Group-sponsored power project at Jharkhand province of India and wants tax waiver from India for the past year.
It be mentioned that Bangladesh has already exempted India from all supplementary and other duties for implementing a series of power projects in Bangladesh by Indian state-owned NTPC and private entities like Reliance Power Ltd and Shapoorji Pallonji Infrastructure Capital Company Ltd.
The government has already exempted India from all supplementary and other duties for implementing a series of power projects in Bangladesh by Indian state-owned NTPC and private entities like Reliance Power Ltd and Shapoorji Pallonji Infrastructure Capital Company Ltd.
The duty barrier on power that might hinder the bulk power import from India, an official has said.  
Bangladesh is one of the signatories of SAARC Framework Agreement for Energy Cooperation (Electricity) and the MoU for the establishment of the BIMSTEC grid interconnection. These two agreements promise free exchange of electricity in this region, officials have said but India impose huge taxes in importing electricity from their country.
During the meeting Dhaka requested India to allow power export to Bangladesh through multilateral parties, which would help Dhaka import electricity from Nepal and Bhutan through the Indian corridor, however, the new Indian guidelines in this connection might affect Bangladesh's target to import 7000MW-8500MW electricity from India by 2035.   
During a bilateral talk with Indian power secretary on December 2016, Bangladesh Power Secretary Monowar Islam raised the issue of an amendment to the new guidelines. But the Indian counterpart is yet to take a decision in this regard.
Earlier, Ajay visited Bangladesh-India Friendship project popularly known as 1,320 MW coal fired Rampal power plant project at Bagerhat and karamjol areas, Kaikaus accompanied him.






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