Staff Reporter :
The government has approved the import of 40MW of hydroelectricity from Nepal using India’s national grid under a direct purchase method for the next five years.
The cost per unit of this electricity will be Tk8.17. Bangladesh will import this power from Nepal after completing formal agreements and other necessary procedures with the respective countries.
The decision was made at the Cabinet Committee on Government Purchase (CCGP) meeting held at the Cabinet Division in the Bangladesh Secretariat on Tuesday.
Cabinet Division Secretary (Coordination and Reforms) Mahmudul Hossain Khan briefed journalists about the CCGP’s decision on the electricity import from Nepal.
Explaining the process, the Cabinet Division Secretary said, “This electricity will be transmitted to Bangladesh via the Indian grid.
Due to its passage through India, a trading margin of Rs0.59 per unit will be paid to the country.
” Additionally, Bangladesh will have to pay India the transmission cost, although the amount has not yet been decided.
When asked about the agreement to be signed, Mahmudul Hossain Khan replied, “It has not been finalized yet.
There will be a tripartite agreement between Bangladesh, India, and Nepal as the electricity will come through India’s transmission line.”
The Bangladesh Power Development Board (BPDB) has initiated a five-year project worth Tk650 crore to facilitate this electricity import.
“The agreement will be for five years, and approximately Tk130 crore will be required each year, totaling around Tk650 crore over five years.
This electricity will be connected to the national grid in Bangladesh’s Bheramara through the Indian national grid,” he said.
Regarding the timeline for Nepal’s electricity to reach Bangladesh, he mentioned, “Perhaps the Prime Minister has a visit to Nepal. Maybe the deal will be done during her visit to Nepal.”
The Cabinet Secretary noted that an agreement between the Nepal Electricity Authority (NEA) and BPDB will be signed to formalize the arrangement.
Earlier, the CCGP gave approval in principle to import 40 MW of hydropower from Nepal through India’s national grid under the direct procurement method. In view of this, BPDB issued an international purchase proposal where the NEA and India’s NTPC Vidyut Vyapar Nigam Limited (NVVN) submitted their proposals.
After scrutinizing the proposal by the Proposal Evaluation Committee (PEC), a contract will be signed for five years to purchase 40 MW of electricity from Nepal under the direct purchase method at the recommended price proposal through negotiation.
In terms of bringing power from Nepal, the price of electricity at the Muzaffarpur substation in India is fixed at US$6.40 per kilowatt. The NVVN trading margin will be 0.595 INR.
Additionally, transmission charges will be as per the Central Electricity Regulatory Commission (CERC) norms of India.