Private firms object to NTPC deal with Bangladesh

NEW DELHI: Private power generating firms have raised concerns over the sale of power by state-owned NTPC to Bangladesh, arguing that domestic coal supply via long-term agreement cannot be used to supply power to other countries.

The Association of Power Producers (APP), the representative body of private power companies, in a letter to the Ministry of Power, has said that such sale violates extant policy and hurts the interests of domestic power consumers.

The APP said that the invitation for bids by Bangladesh Power Development Board (BPDB) had specifically asked if the power supplied from India had the government’s consent to use domestic coal.
The body has asked the government to issue a clarification stating that cross-border supply can be done only if power is generated using imported coal or coal bought through competitive bidding and not through allocations made for meeting domestic demand.

“The access to Linkage Coal (at the notified price), supplied under FSAs/coal supply agreements, and from captive coal mines, can only be utilised for Long Term/ Medium Term PPAs with discoms,” the letter said.