ENERGY sector deals signed with Indian companies so far clearly indicate how India has been singularly un-tapping our energy market making us disproportionately dependent on the big neighbour. These contracts as reported by a national daily on Friday including those signed early this month had already handed over the largest share of Bangladesh Electricity Market to India and more so without internationally solicited contracts to find low cost bidders. The government initially started importing electricity from India to meet immediate demand but the growing number of mega projects in electricity sector at excessive rates suggests we are becoming over-dependent on Indian companies on long-term basis. There are genuine reasons for concerns from national security perspective as well. The government also started depending on the country’s private sector rented power plants to create space to set up big plants in the public sector to produce electricity at low cost. But now high cost Indian electricity is set to meet large part of our future demand.
Many fear such policy twist without taking into account its impact may prove suicidal in future. Think of transfer of huge money from Bangladesh on capital account once those mega projects start supplying electricity to the nation. We can’t afford to be an Indian market at the end without similar investment opportunity to India to earn money to repay. But they have kept the door shut. Without a win-win situation, business as one-way traffic can only create anger in public mind at the end.
The expiating deals have already opened the leeway for Indian companies to make huge unaccountable profits while leaving no space for other countries to jointly explore Bangladesh energy sector on competitive basis. As per new contracts, Indian companies would supply about 7,500MW power to Bangladesh by 2020; which will be around 42 percent of total electricity supply. By this time Indian companies will also supply around 25 percent of natural gas in the form of LNG and 18 percent diesel to defeat any attempt by subsequent Bangladesh governments to create its own capacity in the energy sector.
Perhaps the million dollars question should be – if Indian companies were to charge higher tariff comparing to our local companies, what’s the point of buying electricity from them? Why the government is ignoring that cheaper energy is vital to accelerate economic growth and support business to remain competitive in global market. The defiant attitude of the government to allow India to build the controversial Rampal Power Plant threatening existence of the Sundarbans however only shows the government is not in the driving seat in many matters.
We must say the government should seriously re-consider that expensive contacts and over-dependence on Indian companies are both highly critical to our national interest. India is our friend but we believe it must have a fairer business outlook towards Bangladesh.
