Indo-Bangla JV deal Jan 10

http://newstoday.com.bd/index.php?option=details&news_id=49055&date=2012-01-05

Indo-Bangla JV deal Jan 10

A deal is likely to be signed here on January 10 between the state-owned Power Development Board (PDB) and the Indian state-owned National Thermal Power Corporation (NTPC) to form a joint venture company for setting up the planned 1,320 MW coal-fired power plant in Bagerthat, reports UNB.

After long negotiations, both the Bangladesh and Indian sides have finally agreed to sign the deal to form a joint venture (JV) company which will be registered with the Registrar of Joint Stock Companies in Dhaka, according to a top official at the Power Division.

The joint venture company will be operated and controlled under the Bangladesh law under the Companies Act, said Joint Secretary at the Power Division. The company will be owned by PDB and NTPC on a 50:50 equity basis. But the other aspects of the company like investment of fund, authorised capital, paid-up capital, organograme are still unsettled.

A senior official at the PDB said these issues will be settled when the feasibility will be completed.

As per an understanding between Bangladesh and India, the NTPC will conduct the feasibility study, while Bangladesh Water Development Board’s research wing – Centre for Environment & Geographic Information Services (CEGIS) – will carry out the environment impact assessment, coal sourcing and coal transportation.

On completion of the exercises, the power tariff and such aspects will be settled, said the official.

Dhaka and New Delhi decided to set up the 1320 MW coal-fired power plant more than two years ago. But it took two years’ time only to form the Joint Venture Company to move forward with the plan.

Power Ministry officials said the real work on the proposed power plant will start on completion of JV formation and its registration in Bangladesh.

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