Adani, Reliance sign deals for power generation in Bangladesh

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By the Hindu

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In yet another development in private sector cooperation, Bangladesh on Saturday signed two memoranda of understanding (MoUs) with two major Indian companies to set up 4,600 MW power plants in the country.

The MoUs were signed on the first day of Indian Prime Minister Narendra Modi’s visit to Bangladesh.

$5.5 billion deals
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The deals, worth $5.5 billion, were inked between the Power Development Board of Bangladesh (BPDB) and Indian companies Adani Power Ltd. and Reliance Power.

Investment
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Under the deal, Adani will invest $2.5 billion to set up a coal-based power plant with a capacity of 1,600 MW.

The Reliance Power will set up an imported liquefied natural gas-based power plant in Bangladesh with a capacity of 3,000 MW with an investment of $3 billion.

The two Indian companies said they would take 13 months to complete construction of the plants after final agreements had been reached.

The government of Prime Minister Sheikh Hasina has recently unveiled a 2.95 trillion taka ($38 billion) budget for fiscal 2014-15, stepping up spending on key sectors to tackle power shortages that are crimping economic growth and deterring investment.

The country produces 7,000 MW of electricity but demand far exceeds supply, with a daily shortage up to 1,500 MW.