Bangladesh has proposed to export its surplus electricity to India as a part of power exchange cooperation between two neighbouring countries.
The government has placed the request during a two-day power-secretary level dialogue between Dhaka and Delhi that began on August 25 in Dhaka.
Bangladesh Power Division’s senior secretary Dr Ahmad Kaikaus and Indian power secretary Subash Chandra Garg are leading their respective delegations.
Bangladesh’s electricity generation capacity currently stands at 19,000MW. In addition, captive power plants produce another 3,000MW of electricity. Dhaka now has around 50 per cent surplus capacity against the demand.
Despite surplus electricity, Dhaka continues to import 1140MW of electricity from India and more of electricity import is in the pipeline.
In the first day of the meeting, Dhaka has reiterated its request to exempt tax, VAT and Customs Duty (CD) for importing electricity from India.
The Bangladesh delegation also requested for exemption from all financial implications caused by political events and change in the law in India.
Bangladesh has already exempted tax, VAT and Customs Duty for India for implementing series of public-private projects, including 1600MW Adani coal-fired power plant, Saponji sponsored power plant, other upcoming power projects.
Bangladesh has already imported 1140MW of electricity from India. It also has plans to import another 500MW of electricity from 2nd Surajmaninagar (Tripura) – North Comilla and discussed to import 340MW of electricity through government to government negotiations.
During the meeting, both countries will also discuss the interconnection of the proposed Katihar-Parbatipur-Bornagar 765KV link, Surajmaninagar-Cumilla (north) 400KV link and other links.
The exemption of tax, VAT and Customs Duty (CD) to Dhaka raised several years which was hanged in the Indian finance division. Bangladesh is expected to settle during the two days meeting.
Besides, Bangladesh also discussed to import electricity from Nepal and Bhutan.
The Nepalese electricity is too costly which experts opined to scrap the negotiation.
Both side also discussed on tripartite agreement on import of electricity from Bhutan.