NTPC-Bangladesh power supply deal under the scanner

Raising objections to a NTPC subsidiary signing a power supply agreement with Bangladesh Power Development Board (BPDB), the Association of Power Producers said that the proposed sale will be a violation of government's policy and also be detrimental to Indian consumers.

The association in a letter addressed to power secretary AK Bhalla said that under the existing policy framework, the captive mines and coal supply agreements can only be used to supply to electricity distribution companies. Whereas, the supply of power to Bangladesh using this coal would be against the Indian consumer's interest.

The lobby of Indian power companies requested the ministry to intervene so that coal meant for power generation for Indian consumers is not utilised for BPDB's long-term tenders. The association also requested the ministry to declare that cross-border power supply should be done only from imported coal or from coal bought from e-auction where the fuel prices are higher.

BPDB had earlier invited a tender for supply of 500 MW power under short-term and long-term contracts for which NTPC Vidyut Vyapar Nigam, a wholly-owned subsidiary of NTPC, had emerged as the successful bidder. The company signed an agreement with BPDB for supply of 300 MW of electricity for 15 years.