Adani, Reliance ink MoUs for power generation in Bangladesh

Adani Power Limited (APL) and Reliance Power Limited of India have signed separate memorandums of understanding (MoUs) with Bangladesh Power Development Board (BPDB).
These MoUs were signed on the first day of Indian Prime Minister Narendra Modi’s visit to Bangladesh. The deals were signed to set up 4,600 MW power plants in Bangladesh worth $5.5 billion.
Under the deal, APL will invest 2.5 billion dollars to set up a coal-based power plant with a capacity of 1,600 MW. While Reliance Power will set up an imported liquefied natural gas-based power plant with a capacity of 3,000 MW with an investment of 3 billion dollars.
The two Indian companies will complete construction of the plants in 13 months after final agreements are reached. These plants will help Bangladesh to tackle power shortages that are crimping its economic growth and deterring investment as country produces 7,000 MW of electricity but demand far exceeds supply, with a daily shortage up to 1,500 MW.

Month: Current Affairs - June, 2015