Private gencos question validity of NTPC-Bangladesh power supply deal

Independent power producers (IPPs) have asked the power ministry to clarify if fuel sourced from Coal India linkage or captive mines can be used to export power to neighbouring countries. In a letter, seen by FE, addressed to power secretary AK Bhalla, the association of power producers said since coal supply agreements and captive mines can only be used to supply to electricity distribution companies (discoms) under the existing policy framework, supplying power to Bangladesh using this coal would be “hampering domestic consumer interest”. The letter was referring to the recently concluded power procurement bid by Bangladesh Power Development Board (BPDB) from Indian electricity generators. NTPC Vidyut Vyapar Nigam, a wholly-owned subsidiary of NTPC, had emerged as the successful bidder , and is expected to supply 300 MW power to Bangladesh from June 2018 to May 2033.

The association also wanted the ministry to declare that cross-border power supply should be done only from imported coal, or coal bought from e-auction (where the fuel prices are much higher.) A representative from a private power producer, who did not wish to be named, told FE that restrictive conditions in coal supply agreements do not allow IPPs a level-playing field due to policy embargo.

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