New Delhi: The feasibility report of state-run NTPC's 1,320 MW thermal power plant in Bangladesh is expected to be ready by March this year.
"The feasibility report regarding NTPC project in Bangladesh is expected to be ready by end of this fiscal," a Power Ministry official said.
NTPC, in 2010, signed a Memorandum of Understanding (MoU) with the Bangladesh government for setting up 1,320 MW thermal project at Khulna.
NTPC would be executing this project in joint venture with the Bangladesh Power Development Board (BPDB). It would also execute another similar capacity project at Chittagong, a move aimed at mitigating the power shortages in the neighbouring nation.
The company signed the USD 1.5 billion deal, last year with NTPC to build a 1,320 MW coal-fired power plant at Khulna.
Of the total project cost, 70 percent will be arranged through loans and the rest will be equally shared between the JV partners.
The coal-fired power plants are likely to be installed on a 50:50 equity basis to be run on imported coal and operated by NTPC.
The two power plants are likely to come up with an investment of approximately Rs 13,200 crore.
NTPC will also provide training and development to human resources of BPDB and enhancement of productivity and efficiency of their existing power stations.
Currently, Bangladesh produces power from five types of fuels: gas is used for 82 percent of power generated, furnace oil for 5 percent, diesel for 7 percent, while water and coal-based power make up for the remaining 3 percent power generation.
The country's present power production is slightly more than 5,000 MW against a daily demand of 7,000 MW.
Bangladesh plans to step up power production to 15,000 MW by 2016. The country has signed agreements to set up 50 power stations.