BD seeks duty waiving in Indian power import

Industry Desk: Bangladesh has again sought waiver of all kinds of customs duties (CDs), duties and Value Added Tax (VAT) onthe import of electricity from India as the latter is yet to respond.
It would also want exemption of all financial implicationsdue to political events and changes in law in India.
Dhaka is raising the duty waiver issue again during the current power secretary-level meeting between Bangladesh and India that started in Delhi on Saturday, official sources said.
Bangladesh is importing Tk 45,214 million worth of electricity in the current fiscal year under government to government deals.
It expected to import another 800MW of electricity from Adani sponsored power plant from Jharkhand in India.
“Our major concern is about the electricity import from Jharkand as the import cost will raise significantly if the government of India will impose CDs, Vat and other duties,” an official of Power Division said on the condition of anonymity.
He added that the Bangladesh will like to import electricity from the top list of Bangladesh Power Development Board (BPDB) as it costs significantly low compared to electricity generation from private sector in Bangladesh.
“So, we expect the electricity import from Adani as same priority list if Indian government does not impose any duties on it,” the official added.
Currently, imported electricity meets 8.87 percent of Bangladesh’s total demand.
Officials said the import of electricity from 1600MW Jharkhand power plant of India is likely to be delayed by end of this year as the plant is dependent on Chinese equipment to supply the power.
This could be delayed because China is facing a new wave of COVID-19 pandemic, he said.
“Power import from Adani-sponsored plant may be delayed due to the pandemic in China. We had a plan to import it on December, 2021 and then it was delayed to April, 2022 and then to August 31, 2022,” said the official.
“But I think it’s not now possible to import the electricity by that time also due to the new wave of coronavirus in China. It may not be possible until the end of this year,” he said.

The Adani Power will reach Bangladesh through Chapainawabganj 400KV sub-station.

BPDB and Adani Power Ltd signed a power purchase agreement (PPA) and Implementation Agreement (IA) in November, 2017 to start electricity generation as per the required commercial operation date (RCOD) in January, 2022.

Besides, Bangladesh has a deal to import 1160MW of electricity under bilateral agreement with India.