NTPC plans coal plant in Bangladesh

NTPC, India’s largest power generator, is sending its technical team to Bangladesh to study the feasibility of setting up a coal-based power plant in the neighbouring country.
The company plans to set up a power plant in a joint venture with the Bangladesh government.

“We are exploring the opportunity of setting up a coal-based plant in Bangladesh. Our technical team will leave for Bangladesh in a week’s time. According to initial estimates the power plant could be 500-1,000 mw,” said R S Sharma, chairman and managing director, NTPC.

In January, a visiting delegation from Bangladesh had invited Indian power companies such as NTPC, Power Grid Corporation of India and Bharat Heavy Electricals to set up plants in that country. The proposed power plant in Bangladesh is part of the Indian government’s attempt to improve its business relationship with country.

At present, Bangladesh has a power generation capacity of 5,000 mw, of which 83% is gas-based. However, in the coming years, Bangladesh wants to increase the share of its coal-based power plants for which it needs technology from India. A power plant, in a JV with NTPC, will help Bangladesh use its technology.

Indian power companies, including NTPC and private utilities, are struggling to secure coal linkages for its power plants and Bangladesh offers a huge opportunity to secure coal linkages to Indian companies by entering into strategic tie-ups that would be beneficial for both nations.

The Indian government is exploring opportunity to set up a LNG terminal in Bangladesh. Power Grid Corporation is developing a 400 kv transmission network in Bangladesh.