India to Invest $9 Billion in Energy Projects of Bangladesh to Help Dhaka’s Industrial Base

Energy is one of the topmost talks of New Delhi’s business commitments in their neighbourhood with the gas and power leading about $9 Billion investment projects that India has recently proposed to make in the country of Bangladesh to help the emerging industrial base in Dhaka.

Power behemoths like NTPC, Reliance Group and Adani Group were among the few blue chip companies of India, which were in the investment proposals on Monday. This was in the presence of Bangladeshi Premier Sheikh Hasina who was visiting to enhance power generation and supply electricity to the eastern neighbour of India.

Over the past few years, this cross border power connectivity has emerged as one of the key bridges of friendship between both the countries.

An agreement was signed between EXIM Bank of India and Bangladesh India Friendship Power Company Limited for financing of debt type for the construction of 1,320 Megawatt Maitree Power Project in Rampal, Bangladesh. The value of the deal was estimated at an amount of about $1.6 Billion.

$1 Billion agreement was signed by Reliance Power with Bangladesh’s ministry for mineral, energy and power resources for the development of a 3000 Megawatt power project’s first 75- Megawatt phase at Meghnaghat, Bangladesh.

Adani Power Ltd.’s commitment was for a supply of 1600 Megawatt of power from their Jharkhand plant to Bangladesh. This agreement would cost about $2 Billion.

NTPC Vidyut Vyapar Nigam Ltd has also entered a preliminary packed with the Power Development Board of Bangladesh to supply power from Nepal.  This deal has a total estimated value of about $3.15 Billion, as per the official statement. The two entities also signed another agreement for about 60 Megawatt power supply from Tripura to Bangladesh, which is worth $138 Million.

Liquefied Natural Gas (LNG) preliminary agreements were also signed between Bangladeshi and Indian companies.

Petrobangla signed the preliminary agreements for LNG terminal use with Petronet LNG and with Reliance Power for setting up a LNG terminal with 500 Million Metric Standard Cubic Feet per Day LNG in Kutubdia Island and also with Indian Oil Corporation for cooperation on LNG.

There was also an agreement signed between Bangladesh Petroleum Corporation and Numaligarh Refinery Limited for the purchase and sale of diesel.

The high speed diesel supply source is NRL. This was through the friendship pipeline that is from Siliguri to Parbatipur in the northern area of Bangladesh.

The meeting of about 250 plus business delegations that came from Bangladesh and all the overwhelming response that was given from the Indian community of Businesses clearly shows the great length of potential that exists for the possibility of further cooperation.

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