Power purchase from Adani gets cabinet body nod

The Cabinet Committee on Purchase yesterday recommended buying electricity from the proposed 1,600-MW coal-based power plant of Adani Group in the Indian state of Jharkhand at a cost of 8.6 US cents per unit.

A copy of the document, obtained by The Independent, shows that the committee has recommended buying electricity for 25 years from Adani Group. During this period, the Bangladesh government will pay Tk 190,975.607 crore to Adani Group for the electricity.
Of the 8.6 US cents as levelized tariff charge, 3.8 US cents will be for capacity charges per unit, 0.1 US cent for variable operation and maintenance charges, and 4.71 US cents for fuel prices.
To bring the electricity from Jharkhand, a 235-km-long 400-KV double-circuit transmission line has to be installed. Of that, 145 km will be in Bangladesh and 90 km in India.
On August 11, the Bangladesh Power Development Board (BPDB) and the Adani Group signed another MoU on the issue. After that, government officials held several meetings with representatives of Adani Group to finalise the deal. 
At the meeting in which the negotiations were held, Adani Group proposed 9.287 US cents (Tk. 7.43) for each unit or kilowatt-hour of electricity, considering imported coal at USD 112.59 per tonne with port charges, freight, inland transportation, and taxes and duties. The price—9.287 US cents—included 4.476 US cents in levelized capacity charges, 4.3612 US cents in energy charges, and 0.45 US cents in levelized transmission charges and losses.

Earlier, the Power Division under the Ministry of Power, Energy, and Mineral Resources had sent a letter to the Indian ministry of power, requesting it to waive the tax and duty for the project.
 If the Indian ministry allows this waiver, the tariff will come down.  Adani Power Ltd sent a letter to Bangladesh on February 6, 2017, which stated that if the Indian government waived any tax, the company would make sure that the money was sent back to the BPDB.
The BPDB then wrote to the Cabinet Committee on Purchase that considering all aspects, the BPDB had found Adani’s offer acceptable and recommended approving the negotiated tariff.

Power purchase from Adani gets cabinet body nod

The Cabinet Committee on Purchase yesterday recommended buying electricity from the proposed 1,600-MW coal-based power plant of Adani Group in the Indian state of Jharkhand at a cost of 8.6 US cents per unit. A copy of the document, obtained by The Independent, shows that the committee has recommended buying electricity for 25 years from Adani Group. During this period, the Bangladesh government will pay Tk 190,975.607 crore to Adani Group for the electricity. Of the 8.6 US cents as levelized tariff charge, 3.8 US cents will be for capacity charges per unit, 0.1 US cent for variable operation and maintenance charges, and 4.71 US cents for fuel prices. To bring the electricity from Jharkhand, a 235-km-long 400-KV double-circuit transmission line has to be installed. Of that, 145 km will be in Bangladesh and 90 km in India. On August 11, the Bangladesh Power Development Board (BPDB) and the Adani Group signed another MoU on the issue. After that, government officials held several meetings with representatives of Adani Group to finalise the deal. At the meeting in which the negotiations were held, Adani Group proposed 9.287 US cents (Tk. 7.43) for each unit or kilowatt-hour of electricity, considering imported coal at USD 112.59 per tonne with port charges, freight, inlandtransportation, and taxes and duties. The price9.287 US centsincluded 4.476 US cents in levelized capacity charges, 4.3612 US cents in energy charges, and 0.45 US cents in levelized transmission charges and losses. Earlier, the Power Division under the Ministry of Power, Energy, and Mineral Resources had sent a letter to the Indian ministry of power, requesting it to waive the tax and duty for the project. If the Indian ministry allows this waiver, the tariff will come down. Adani Power Ltd sent a letter to Bangladesh on February 6, 2017, which stated that if the Indian government waived any tax, the company would make sure that the money was sent back to the BPDB. The BPDB then wrote to the Cabinet Committee on Purchase that considering all aspects, the BPDB had found Adanis offer acceptable and recommended approving the negotiated tariff.