Reliance Power, Adani Power sign MoUs to set up plants in Bangladesh

By: and |
June 07, 2015 12:37 AM

Anil Ambani promoted Reliance Power and Adani Power signed separate memorandums of understanding with state-run Bangladesh Power Development Board (BPDB).

reliance powerReliance Power said it would develop a 3,000 megawatt (MW) gas-based power plant in Bangladesh. (PTI)

Anil Ambani-promoted Reliance Power and Adani Power signed separate memorandums of understanding with state-run Bangladesh Power Development Board (BPDB) on Saturday.

Reliance Power said it would develop a 3,000 megawatt (MW) gas-based power plant in Bangladesh. The plant would require an estimated investment of about $3 billion dollars in phases.

As per Reliance Power officials, the proposed plant will be able to supply 35% cheaper power compared to the diesel-based power price used extensively in the country. Bangladesh produces nearly 7,000 MW but suffers from peak shortages of about 1,500 MW.

The company said it intends to use the equipment procured for the 2,400 MW gas-based combined cycle power project at Samalkot in Andhra Pradesh for the project in Bangladesh.

The Rs 10,000-crore plant at Samalkot failed to take off due to rapid decline in the gas output from the KG D6 fields. Sources in the company told FE on the condition of anonymity that the plant at Samalkot will continue to feature in company’s portfolio and will be built afresh when domestic gas supply stabilises. The project was slated to receive 9.6 MMSCMD of domestic gas as recommended by ministry of power.

“Reliance Power is proposing to install the equipment procured for Samalkot project, including advanced class 9FA machines supplied by GE, in the proposed project at Bangladesh, under appropriate guarantees from GE and the other equipment suppliers,” the company said. Adani Power will set up two coal-fired plants with a total capacity of 1,600 MW that will cost more than $1.5 billion. Officials of the firms said it would take 13 months to complete construction of the plants after final agreements had been reached. “Discussions are going on to settle the details of the plants,” said Mohammad Saiful Islam, a director of BPDB.

For Updates Check Economy News; follow us on Facebook and Twitter

Do you know What is India expected to grow 10 pc during current fiscal: NCAER Director General Poonam Gupt,FinMin releases Rs 9,871 cr grant to 17 state, Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Forex reserves down by USD 2.713 mn to USD 637.687 bn
2Rs 374.78 cr payment pending for reprocessing under PM-KISAN since 2019: Centre
3No acute shortage of fertilisers; availability of DAP for rabi season more than demand: Govt