The Bangladesh Power Development Board (BPDB) has renewed its agreement with Tripura State Electricity Corporation Limited (TSCEL) on 2 December.
The announcement made on Saturday stated that the agreement will continue till March 2026, reports ANI.
"The Government of India (GoI) and the People's Republic of Bangladesh (GoB), by a Memorandum of Understanding (MOU) made on January 11, 2010 had, inter-alia, agreed for power trading between Bangladesh and India at a mutually agreed price and procedure. NTPC Vidyut Vyapar Nigam Limited (NVVN) was designated as 'Nodal Agency' by the Ministry of Power, GoI for cross border trading of power with Bangladesh from Tripura State Electricity Corporation Limited (TSECL). Initially, the agreement was signed among the parties namely TSECL, NVVN and BPDB (Bangladesh Power Development Board) for a quantum of 100 MW of power in March 2016 which was subsequently extended to 160 MW," reads the release from TSCEL.
The agreement expired on March 16 this year.
During the 19th Joint Working Group/ Joint Steering Committee meetings on Indo-Bangladesh Co-operation in Power Sector between Bangladesh and India held on January 23 this year at Dhaka, Bangladesh, it was decided that 'the contract may be extended provided the tariff, terms and conditions, tenure and quantum of power are acceptable to both the parties."
"Accordingly, under the guidance of Jishnu Dev Varma, Deputy Chief Minister of Tripura; Kiran Gitte, IAS, the then Secretary (Power), Government of Tripura and Dr M. S. Kele, Managing Director, TSECL negotiated with the Bangladesh counterpart and finalize the modified terms and conditions of the agreement for a period of another five years w.e.f. March 17, 2021 to March 16, 2026 after four meetings among the stakeholders. Dr. M. S. Kele, MD, TSECL and Praveen Saxena, CEO, NVVN represented India and Secretary (Power), GoB and Director, BPDB represented Bangladesh and signed this tripartite supplementary agreement on December 2, 2021 in Bangladesh. As per the modified terms and conditions of the agreement, TSECL will supply 160 MW+ 20 per cent (i.e. maximum 192 MW) to Bangladesh instead of earlier 160MW," the release added.
The tariff for this supply for the 1st Contract year shall be INR6.27/kWh and trading margin to NVVN will be Ps 01/kWh w.e.f March 17, 2021 with a fixed year on year escalation of 2 per cent per year. This Supplementary Agreement shall be an integral part of the earlier Power Sale Agreement which was executed on March 18, 2016. The agreement can further be extended on mutually agreed terms and conditions in future.