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Power Import from India

No fixed tariff

Staff Correspondent
Bangladesh will follow a formula for adjusting tariff from time to time for power import from India, instead of fixing a permanent rate.
A power purchase agreement (PPA) to be signed between Dhaka and New Delhi will provide for this.
The cabinet committee on economic affairs yesterday approved the PPA at a
meeting chaired by Finance Minister AMA Muhith.
Bangladesh officials, however, said the tariff could be Tk 5 per unit at the end-user level, including transmission charge and transmission loss.
The Power Division said Article 10 of the PPA has described the method for determining tariff. As power will be imported from India in December this year, no specific tariff can be finalised in the PPA at the moment. Tariff will be fixed when India starts supplying electricity.
The Power Division also said, if the government pays the power bill quickly, Bangladesh will be entitled to a rebate.
An indicative price of power, however, has been
mentioned in the PPA. India will supply 250 megawatt power from its 13 coalbased power plants, and average price of the electricity last year was Rs 2.40 per kilowatt hour.
Early this month, Power Secretary Abul Kalam Azad said at a press conference India would supply electricity at Tk 4 per KW hour.
But Power Development Board (PDB) Chairman ASM Alamgir Kabir told the same press conference that Indian electricity price may be around Tk 5 at end-user level with the inclusion of transmission cost.
In August last year, the Power Division sent a draft proposal to the cabinet committee on signing of the PPA, but till date the committee did not give any decision in this regard.
The committee meeting yesterday also approved a proposal for purchasing surplus electricity from two private power producers. As proposed, the government will purchase 216 MW power from Beximco Power Co Ltd, which is 40 percent of the company's total production.
Price of electricity from Beximco Power will be Tk 4.97 per KW hour, while Chittagong Power Company will provide 15 MW electricity at Tk 4.51 per KW/hour.
Both the power plants are coal-based. The price of power from the two companies is higher than the price at which the government is purchasing power from other coal-based plants.