TSECL Renewed Power Sale Agreement with Bangladesh

TSECL Renewed Power Sale Agreement with Bangladesh

The Government of India (God) and the People’s Republic of Bangladesh (GoB), by a Memorandum of Understanding (MOU) made un 11 January 2010 had, inter-alia, agreed for power trading between Bangladesh and India at a matally agreed price and procedure NTPC Vidyut Vynpar Nigam Limited (NVVN) was designated as “Nodal Agency” by Ministry of Power, Gol for cross border trading of power with Bangladesh from Tripura State Electricity Corporation Limited i (TSECL).

Initially agreement was signed among the parties manely – TSECL, NVVN and BPDB (Bangladesh Power Development Board) for a quantum of 100 MW of power in March 2016 which was subsequently extended to 150 MW. This agreement was expired on 16.03.2021

In the 15 Joint Working Group/ Joint Steering Committee meetings on Indo-Bangladesh Co-operation in Power Sector between Bangladesh and India held on 23 January 2021 at Dhaka, Bangladesh, it was decided that “the contract may be extended provided the tariff, terms & conditions, tenure and quantum of power are acceptable to both the parties”.

Accordingly, under the guidance of Shri Jishnu Der Varma, Hon’ble Deputy Chief Minister of Tripura; Shri Kiran Glate, IAS, the then Secretary (Power), Government of Tripurn and Dr. M. S. Kele, Managing Director, TSECL negotiated with the Bangladesh counterpart and finalize the modified terms & conditions of the agreement for a period of another five years wef. 17.03.2021 to 16.03.2026 after four meetings among the stakeholders.

Dr. M. S. Kele, MD, TSECL and Shri Praveen Saxena, CEO, NVVN represented INDIA and Secretary (Power), GoB and Director, BPD represented BANGLADESH and signed this tripartite supplementary agreement on 21 December, 2021 in Bangladesh. As per the t modified terms & conditions of the agreement, TSECL will supply 160 MW-20% (e. maximum 192 MW) to Bangladesh instead of calier 160MW.

The tariff for this supply for the 1 Contract year shall be INR6 27/kWh and trading margin to NVVN will be of Ps 01/kWh wef 17″ March 2021 with fixed year in year escalation of 2% per year.

This Supplementary Agreement shall be the integral part of the earlier Power Sale Agreement which was executed on 18 March 2016. The agreement can further be extended on mutually agreed terms and conditions in fine

This agreement is not only a unique precedent of Indo Bangla friendship but also a part of celebrations to mark the platinum jubilee of the India’s independence Azadi Ka Amrit Mahotsav and Hangladesh’s golden jubilee of independence “Suborno Joyout”.

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