September 3, 2019
Reliance Power will hold a 51 per cent stake, while JERA will have 49 per cent in the joint venture company heading the project
RPower will relocate one module of its combined cycle power project in Andhra Pradesh for the Phase-1 project in Bangladesh
The project represents India’s largest foreign direct investment in Bangladesh, as well as Japan’s energy investment in Bangladesh
As part of its Neighbourhood First Policy, India has extended varied services to nations that are geographically as well as culturally close
Reliance Power (RPower) has signed a deal with JERA, one of the largest energy utilities in Japan, to set up a 750 MW gas-based combined cycle power project (Phase-1) in Meghnaghat, Bangladesh. RPower will hold 51 per cent stake, while JERA will have 49 per cent in the joint venture company. K Raja Gopal, chief executive officer for RPower, said the project would be developed on a build-own-operate model and is expected to involve an investment of US$750 million.
The agreement also includes RPower as the equipment provider for the project. RPower said it would relocate one module of its combined cycle power project at Samalkot in Andhra Pradesh for the Phase-1 project in Bangladesh.
Mr Anil D Ambani, Chairman, Reliance Group of Companies said, “This joint venture project will give a tremendous boost to the economic and industrial growth of Bangladesh and will enhance the energy security of the country with clean, green and reliable LNG based power. We are excited to be part of the growth story of Bangladesh in partnership with JERA.”
The project represents India’s largest foreign direct investment in Bangladesh, as well as Japan’s investment into Bangladesh in the power sector. Energy ties between India and Bangladesh also includes an agreement, signed by the state-run power major NTPC’s trading arm to supply 300 MW power to the country, in September last year. India’s Tripura also supplies power around 190 MW power to Bangladesh.
As part of its Neighbourhood First Policy, India has extended varied services to nations that are geographically and culturally close. The country’s cornerstone has been the motto, Sabka Saath, Sabka Vikas (solidarity with everyone, development for all). For example, Bhutan, India’s largest aid recipient, has received funds for many of their Five Year Plans. India’s contribution to their 11th Five Year plan made up 68 % of the total assistance that Bhutan received from external sources. India has also signed a record 90 agreements with Bangladesh in this period, even extending development assistance to the tune of US$8 billion pledged over an eight year period. Similarly, aid has been extended for several developmental and cultural projects to Sri Lanka, Nepal, Afghanistan, etc.