Agartala: Tripura State Electricity Corporation Limited (TSECL) has renewed the power sale agreement for 5 years which is from 2021 to 2026 with the neighbouring Bangladesh which expired in March this year.
According to a press statement by TSECL, the Government of India (GoI) and the People’s Republic of Bangladesh (GoB), by a Memorandum of Understanding (MOU) made on 11th January 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 Ministry of Power, GoI for cross border trading of power with Bangladesh from Tripura State Electricity Corporation Limited (TSECL). Initially, 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. This agreement was expired on 16th March of 2021," the statement said.
The official informed that in the 19th Joint Working Group/ Joint Steering Committee meetings on Indo-Bangladesh Co-operation in Power Sector between Bangladesh and India held on 23rd January 2021 at Dhaka, Bangladesh, it was decided that “the contract may be extended provided the tariff, terms & conditions, tenure and quantum of power are acceptable to both the parties.”
Accordingly, under the guidance of Jishnu Dev Varma, Deputy Chief Minister who also holds the department of Power in the state, 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 of 2021 to 16th March of 2026 after four meetings among the stakeholders.
Also read: Tripura's power export to Bangladesh to continue
Dr M. S. Kele, Managing Director of TSECL, and Praveen Saxena, CEO of NVVN, represented India, while Secretary (Power) for the government of Bangladesh and Director, BPDB represented Bangladesh and signed this tripartite supplementary agreement on 2nd December 2021 in Bangladesh.
As per the modified terms & conditions of the agreement, TSECL will supply a maximum of 192 MW to Bangladesh, a 20 per cent increase on the earlier 160MW.
"The tariff for this supply for the 1st Contract year shall be INR 6.27/kWh and trading margin to NVVN will be of Ps 01/kWh from 17th March 2021 with fixed year on year escalation of 2% per year. This Supplementary Agreement shall be an integral part of the earlier Power Sale Agreement which was executed on 18th March 2016. The agreement can further be extended on mutually agreed terms and conditions in the future. This agreement is not only a unique precedent of Indo-Bangla friendship but also a part of celebrations to mark the platinum jubilee of India’s independence 'Azadi Ka Amrit Mahotsav' and Bangladesh’s golden jubilee of independence ‘Suborno Joyonti’," the official of the power department said.
