‘Dilemma’ over Reliance Group’s investment

The government looks to have been in dilemma over the implementation of Reliance Group’s investment proposal as more studies are required to determine its cost effectiveness, according to official sources, reports UNB. As per a revised investment proposal, the sources said, Reliance now wants to set up a 750 MW gas-based power plant in Meghnaghat and also a 500mmcfd capacity LNG terminal in Chittagong.
Receiving the revised offer, although the Power Division gave a go-ahead to the proposal for power plant, the Energy Division is yet to take the final decision over the proposal on LNG terminal.
Energy Division officials said the state-owned Gas Transmission Company Limited (GTCL) was asked to assess the LNG terminal related issues to determine the cost effectiveness of the project.
Admitting the Energy Division’s instruction, GTCL managing director Mahbub Sarwar
said his organisation is now preparing a
design for a gas pipeline which will be
connected with the LNG terminal.
“Once the design is completed, a clear picture of cost effectiveness of Reliance’s investment proposal will be found,” said another
GTCL official.
Initially, the Indian conglomerate offered to invest $3 billion in Bangladesh to set up an LNG terminal and an LNG-based 3000 MW power plant power plant in Bangladesh.
On the basis of the proposal, a memorandum of understanding (MoU) was signed between the government and Reliance Group in June 2014 during the Indian Prime Minister’s Dhaka visit.
But after a long discussion over the last two years, there has been no substantial progress. Reliance has recently come up with its revised proposal of 750 MW power plant and a 500 mmcfd LNG station.
Energy Division officials said they are still seeing no sign of cost effectiveness of the two projects as power tariff found to be higher compared to that of others.

Dilemma over Reliance Groups investment

The government looks to have been in dilemma over the implementation of Reliance Groups investment proposal as more studies are required to determine its cost effectiveness, according to official sources, reports UNB. As per a revised investment proposal, the sources said, Reliance now wants to set up a 750 MW gas-based power plant in Meghnaghat and also a 500mmcfd capacity LNG terminal in Chittagong. Receiving the revised offer, although the Power Division gave a go-ahead to the proposal for power plant, the Energy Division is yet to take the final decision over the proposal on LNG terminal. Energy Division officials said the state-owned Gas Transmission Company Limited (GTCL) was asked to assess the LNG terminal related issues to determine the cost effectiveness of the project. Admitting the Energy Divisions instruction, GTCL managing director Mahbub Sarwar said his organisation is now preparing a design for a gas pipeline which will be connected with the LNG terminal. Once the design is completed, a clear picture of cost effectiveness of Reliances investment proposal will be found, said another GTCL official. Initially, the Indian conglomerate offered to invest $3 billion in Bangladesh to set up an LNG terminal and an LNG-based 3000 MW power plant power plant in Bangladesh. On the basis of the proposal, a memorandum of understanding (MoU) was signed between the government and Reliance Group in June 2014 during the Indian Prime Ministers Dhaka visit. But after a long discussion over the last two years, there has been no substantial progress. Reliance has recently come up with its revised proposal of 750 MW power plant and a 500 mmcfd LNG station. Energy Division officials said they are still seeing no sign of cost effectiveness of the two projects as power tariff found to be higher compared to that of others.