Reliance trying to get 2 power plants contract sans tender

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Anisul Islam Noor :
Reliance group, an India conglomerate, has been negotiating to sell around 200mw solar power to Bangladesh.
“We have received Reliance’s proposal offering to sell electricity from its solar power plant at US cents 15 per unit or kilowatt-hour which is equivalent to Tk 12 per unit,’ a power division official, adding that a decision would be taken after examining the matter.
Reliance has wanted the job under the Speedy Supply of Power and Energy (Special Provisions) Act 2010, overstepping the rule for awarding power generating projects without tender, sources said.
The official said that it would be possible if the proposal is approved by the concerned authorities.
The deal will be for 20 years, according to the proposal sent by Reliance Power’s Senior Vice-President and head of business Sameer Kumar Gupta told the media early October.
Apart from the proposal, Reliance is now negotiating to set up and operate a 750MW gas-fired power plant and a floating terminal to supply 500 million cubic feet of natural gas per day from imported LNG under the speedy supply act.
Reliance in its proposal also requested for exemption of all sorts of taxes and duties applicable for business in Bangladesh.
The Power Development Board will lease out 1,000 acres of developed land to Reliance under a long-term agreement at a low rent. The location should be in the proximity to any load centre like Dhaka or Chittagong, according to the proposal.
The government will require providing additional land to be used to install any temporary establishment, connecting roads and power evacuation facilities.
State-run Power Grid Company of Bangladesh will develop power evacuation system, including installation of transmission lines to feed the electricity to the national grid from the plant, the proposal said.
Reliance in its proposal demanded free supply of 170 cubic metres of water every day and that would be required during construction period.
The government will have to provide guarantee to facilitate Reliance to have easy access to loans in the international market.
The Reliance proposal also kept an open window to get support from the government of Bangladesh as it said, ‘Any other support that has not been specified hereinabove but that would be required for successful implementation, financing and operation of the project shall be provided by the government of Bangladesh.’
The government has also been requested to provide all necessary approvals prior to the beginning of the project implementation.
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