The state-owned Bangladesh Power Development Board (BPDB) signed the power purchase agreement (PPA) with Nutan Bidyut Bangladesh Limited, a newly formed power company by Shapoorji Pallonji Group of India, for procuring 220 megawatt (MW) electricity in the country.
The Shapoorji Pallonji will set up the duel fuel power plant at Borhanuddin island of Bhola district within next 28 months and start commercial operation by December 2019.
Secretary of BPDB Mina Masud-uz-Zaman and J Sinha Mahapatra Director of Nutan Bidyut Bangladesh Limited signed the PPA on behalf of their respective sides at the Bidyut Bhaban in Dhaka on Monday.
The BPDB would purchase electricity from the plant for next 22 years at tariff of 3.9830 US Cent (equivalent to Tk 3.1864 per unit) per kilowatt hour for gas-fired generation and 16.9621 US Cent (equivalent to Tk 13.57 per unit) when the plant will run by diesel at 212 MW capacity.
Welcoming the deal with Shapoorji Pallonji, State Minister for Power, Energy and Mineral Resources Nasrul Hamid noted it is the first Indian company which has moved to set up a power plant here with hundred percent private investment.
Urging the Indian company to complete its project before the next general election, he said the government has a plan to increase power generation by 2,000 MW each year.
The function was addressed, among others, by Power Division Secretary Dr Ahmad Kaikaus, Petrobangla Chairman Abul Mansur Md. Faizullah and BPDB chairman Khaled Mahmood.