According to reports, Anil Ambani’s Reliance Power and Adani Power have pledged an estimated combined investment of $4.5 billion for setting up power stations in Bangladesh.
Reliance Power signed a deal with Bangladesh Power Development Board for setting up a 3,000 mw liquid gas-fired plant and a floating terminal for importing gas in ships to power the unit at a total investment of $3 billion. This makes it the single-largest foreign investment for Bangladesh.
At present, Bangladesh produces about 7,000 MW (Mega Watt) and faces an average daily shortfall of around 1,500 MW. A major chunk of power is produced by burning diesel and costs 15-16 cents per unit. Trade analysts said given the current economics of LNG (liquefied natural gas) price, Reliance Power would be able to supply electricity at an estimated 10 cents per unit.
Reliance Power would move the equipment it had imported from US gear-maker GE and other suppliers for setting up a 2,400 MW station at Samalkot in Andhra in India and add another 600 MW unit later.
The equipment was not installed in the absence of allocation of gas from Reliance Industries Ltd’s Andhra offshore field due to drastic fall in output. The equipment would be installed in Bangladesh with manufacturer’s guarantee.
A Reuters report from Dhaka stated the Adani group also signed a deal for setting up a coal-fired plant in that country. Further details about this deal are still to be furnished by company representatives.
Also on the list is NTPC, which is in the process of building a power station at an investment of $1.2 billion in joint venture with BPDB. All these power projects are aimed at meeting future demands as Bangladesh’s power demand is expected to rise from 24,000 MW to 40,000 MW by the year 2030.