Bangladesh says India offers power to meet shortfalls

By Serajul Islam Quadir

DHAKA (Reuters) - India has offered to link Bangladesh to its electricity grid and sell it power to help it overcome persistent shortages in peak demand periods, a senior Bangladesh official said on Sunday.

India's State Minister for Power and Commerce Jairam Ramesh made the proposal during a meeting with M. Tamim, an aide to the head of Bangladesh's interim government, responsible for power and energy.

"We are open and positive (to the offer) and have requested the minister to send a formal proposal. He has assured us he will do it this month," Tamim told Reuters.

Ramesh said Bangladesh could buy electricity from plants in Tripura, where generation capacity exceeds demand, and other north-eastern Indian states bordering Bangladesh.

"India is ready to pen a deal with Bangladesh to sell up to 1,000 MW of electricity," Tamim quoted the minister as saying.

Oil and Natural Gas Corporation of India is installing the 700 MW plant at Palatana, 60 km from Agartala, the capital of Tripura, but has warned the project may be impacted by turmoil in markets.

Ramesh proposed Bangladesh could be a partner in the Tripura power plant, with 10 to 15 percent share, Tamim said.

The World Bank said on Saturday it had approved a $350 million loan for Bangladesh to build more power plants to help overcome a chronic shortage of power.