Private Power Companies Object To NTPC’s Sale Of Power In Bangladesh

Private Power Companies Object To NTPC’s Sale Of Power In Bangladesh

Private power generating companies have objected to the sale of power by NTPC to neighbouring Bangladesh. The companies have argued that domestic coal supply via long-term agreement cannot be used to supply power to other countries.

In a letter to the secretary, Ministry of Power, the representative body of private power companies, Association of Power Producers (APP), has said that the bid called by Bangladesh Power Development Board (BPDB) has specifically asked if the power supplied from India has the government’s consent to use domestic coal.

“The access to Linkage Coal (at the notified price), supplied under FSAs/Coal supply agreements, and from captive coal mines, can only be utilised for Long Term/ Medium Term PPAs with discoms. This means that any bidder securing BPDB bid based on Domestic Linkage Coal/captive coal would lock in part of Domestic Coal resources for external consumption for 13 years, thereby hampering domestic consumer interests, and would be violative of the extant policy framework,” said the letter.

BPDB called bids for supplying 300 MW power from India. NTPC, the largest thermal power producer, won the bid beating three players namely Adani Power, Semcorp and PTC. NTPC would supply power through its power trading arm NTPC Vidyut Vyapar Nigam (NVVN). Read More…

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