Context:
- India’s biggest electricity producer NTPC Ltd has won tender to supply 300 megawatts (MW) of electricity to power-starved Bangladesh for 15 years.
- The supply of 300MW to Bangladesh is part of India’s strategy of playing a key role in creating a new energy security architecture for its neighbours.
- It will help NTPC earn Rs.900 crore in annual revenue.
- It will help NTPC to keep pace with fast-changing power sector wherein absence of fresh demand for electricity is weighing down the entire power sector.
- India is currently exporting approximately 600 MW electricity to Bangladesh.
Significance:
- Fostering cross-border energy trade is an important part of India’s South Asia-focused neighbourhood-first policy.
- It also has been articulated in NITI Aayog’s draft national energy policy.
- India already has power grid links with Nepal, Bhutan and Bangladesh and is building power projects in three countries.
- It is also planning to develop power transmission links with Myanmar and Sri Lanka.
- India has also been pursuing closer ties in energy sector with Bangladesh, helping markets to integrate.
- State-run Indian Oil Corp. is exploring long-term deals with Bangladeshi companies for supplying LPG and other petroleum products.
- Moreover, there is also plan to set up large LPG import terminal in partnership with local companies, allowing large vessels to arrive in Chittagong port of Bangladesh.