State-owned NTPC is likely to start supply of 250 MW power to neighbouring Bangladesh from next month.
'NTPC Vidyut Vyapar Nigam (NVVN), a subsidiary of NTPC, is expected to start supplying power to Bangladesh from September 2013,' the company said in a statement.
NVVN is the nodal agency for supply of power to Bangladesh.
Senior official in the Bangladesh Power Ministry Mohammad Anwar Hossain handed over Sovereign Guarantee to CEO-NVVN Nand Kishore Sharma in Dhaka in presence of Chairman BPDB (Bangladesh Power Development Board) and other senior officials of BPDB and NVVN.
Sovereign Guarantee is an instrument of Payment Security against supply of 250 MW Power for 25 years from various power stations of NTPC under the Power Purchase Agreement (PPA) signed between NVVN and BPDB on February 28, 2012.
The public sector company is likely to export 250 MW power to Bangladesh from the unallocated quota available with the Power Ministry.
BPDB is also expected to purchase an additional 250 MW from the India.
The electrical grid interconnection between the two countries would be through a HVDC (high voltage direct current) link between the eastern region of India and the western grid of Bangladesh.
The grid will facilitate cross-border power transfer of 500 MW.
The transmission system on the Indian side will be executed by the Power Grid Corporation of India, which would also provide consultancy to Bangladesh, up to the commissioning for the project.
NTPC has an installed capacity of over 41,000 MW.