SGPL has received letters of intent from BPDB confirming its success in both the short term and long term bids.
Sembcorp Energy India (SEIL) today said it has won a bid to supply 250 MW electricity to Bangladesh for 15 years. Sembcorp Gayatri Power, a subsidiary of SEIL, bid the lowest among half a dozen power utilities which submitted offers to Bangladesh Power Development Board (BPDB) for the supply.
"SGPL has received letters of intent from BPDB confirming its success in both the short term and long term bids, and supply of power is expected to commence soon upon completion of procedural requirements and relevant government approvals," the company said in a statement.
It, however, did not reveal the price at which it will supply power to Bangladesh.
BPDB had in February invited bids for buying 250 MW power from Indian firms for short duration (August 1, 2018, to December 31, 2019) and long-term (January 1, 2020, and July 31, 2033).
Other bidders included Adani Power Mundra Ltd, Hindustan Power, Jaiprakash Power Ventures Ltd, Meenakshi Energy Pvt Ltd and Odisha Power Generation Corp Ltd.
SEIL MD Vipul Tuli said, "We are pleased to have emerged the successful bidder, and look forward to commencing supply of power at a tariff that is attractive for Bangladesh and sustainable for SEIL, in keeping with growing Indo-Bangladesh economic ties. This bid fits into SEIL's strategy of providing cost-competitive and reliable power, while prudently contracting our balance open capacity at viable tariffs."
SEIL is part of the Singapore-based energy, water and marine group, Sembcorp Industries. Sembcorp Gayatri operates a 2,640 MW coal-fired power plant in Andhra Pradesh.
"SEIL owns and operates a balanced portfolio of both thermal and renewable energy assets totalling 4.37 gigawatts' capacity in operation and under construction," the statement said.
India exports approximately 900 MW of electricity to Bangladesh.
In February, state-run power giant NTPC had won a bid to supply 300 MW power to Bangladesh for 15 years at an estimated tariff of Rs 3.42 per unit. NTPC Vidyut Vyapar Nigam (NVVN), a wholly-owned subsidiary of NTPC Ltd, had won that bid over Sembcorp by a few paise, sources said.
That contract gave NTPC Rs 900 crore of annual revenue.
For that tender, BPDB had invited bids for supply of 500 MW power from India for short-term (June 1, 2018, to December 31, 2019) and long-term (January 1, 2020, to May 31, 2033). NVVN, Adani Group, PTC and Sembcorp submitted bids by the scheduled date of January 11.As on June 5, Bangladesh had about 15,553 MW of installed capacity and 2,800 MW of captive power capacity. This is, however, way short of demand and the country had to import electricity.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.