Reliance Power will make the largest foreign investment in Bangladesh to construct a 3000 MW power plant. The Agreement was signed by the executives of the company during the visit of Prime Minister Narendra Modi to the eastern neighbour country.
The project is a historical one as it is considered to be one of the largest foreign investments made by an Indian entity in a South Asian country.
Similarly, better political understanding between the two sides may reinforce the project’s execution. During Modi’s two day visit, both countries will sign a territory swap deal.
The power project will be completed in three years with Reliance putting nearly $ 3billion, which is approximately Rs19000 crores. Agreement is to generate electricity in three years from signing the power purchase agreement. Reliance will also construct a floating LNG import terminal in Bangladesh.
Bangladesh is already availing electricity from India through the power grid that is constructed between the two countries. The high-voltage transmission line runs from Baharampur in West Bengal, to Bheramara in Kushtia district, in south-west Bangladesh and transmits 500 MW of electricity.
Reliance has rich experience in the field and is having two important ultra power projects in India- Sasan and Tilaiya.
Similarly, it is working with many other major power projects to expand capacity. For its proposed project, the company will use the equipment it had contracted for its Samalkot project in Andhra Pradesh for setting up the power plant in Bangladesh.
The news about this strong economic engagement comes amidst the signing of the historical territory swap deal between the two countries. As part of the deal, India and Bangladesh will exchange territories which inhabit their people in opposite sides.