Bangladesh expects $7-9 bn investment by Indian power cos
Looking for increased co-operation with India in the energy space, Bangladesh expects Indian companies to invest $ 7-9 billion in its power sector and a few entities have already evinced interest.world Updated: Mar 04, 2012 11:17 IST
Looking for increased co-operation with India in the energy space, Bangladesh expects Indian companies to invest $ 7-9 billion in its power sector and a few entities have already evinced interest.
Bangladesh would need about $ 30 billion for its planned power capacity addition over the next five-six years and expects about 25-30 per cent of the investments for the same to come from India, Bangladesh Power Secretary Md Abul Kalam Azad told PTI in an interview here.
Grappling with acute electricity shortage, Bangladesh is embarking on significant capacity addition plans and is in the process of inviting tenders for projects having capacity of over 5,000 MW.
Azad said the country needs about $ 20 billion investment in power generation activities alone in the next five to six years.
"So, taking into account transmission and generation (activities), the total investment expected in the power would be around $ 30 billion," he said in an interview during his visit to India.
"I expect around 25-30 per cent investments (of our expected total) would come from India," he said.
Currently, Bangladesh has an installed capacity of over 7,600 MW and is expected to go up to 21,000 MW by 2021.
According to Abul Kalam Azad, many companies, including those from India have participated in tender processes for various power projects.
"Private players from India are interested in gas and coal projects as well as transmission... Indian investors will love to be part of Bangladesh power sector," he noted.
In January, NTPC inked a pact with Bangladesh Power Development Board to build $ 1.5-billion Khulna project --having 1,320 MW capacity. Separately, NTPC has agreed to export 250 MW power to Bangladesh.
On March 1, Bangladesh organised a road show here to showcase the business opportunities in their power sector. Prior to that, similar road shows were conducted in the UK, the US and Singapore.
Meanwhile, Bangladesh is looking to participate in the hydro power projects in Arunachal Pradesh, Sikkim and Mizoram. Further, the country is interested to take part in gas-based or coal-based power projects in the Indian states which are adjoining to Bangladesh.
To meet its growing needs, Bangladesh would be building nuclear power plant with Russia.
"We are talking with Russia. I believe that within the middle of this year, we will have a final contract with them for building primarily 1,000 MW and another 1,000 MW (capacity). This may come up by 2018-19," Azad said.