Dhaka: Dhaka and New Delhi have settled a power tariff of Rs 5.5, or Tk 6.43 per unit for Bangladesh’s import of 100MW electricity from the Palatana Power Plant built with Bangladeshi cooperation in bordering Tripura state.

Both parties reached the understanding on the power tariff at their meeting at Biddyut Bhaban in the capital city on Saturday.

An Indian delegation, led by Tripura state’s Power Minister Manik Dey, arrived in Dhaka on Friday to settle the tariff.

The Indian delegation held meetings with their Bangladeshi counterparts over the issue. Bangladesh Power Ministry’s additional secretary Dr. M Ahmed Kaukawas led the home side.

After the meeting, Bangladesh State Minister for Power and Energy Nasrul Hamid and Tripara’s Power Minister Manik Dey announced the understanding on the power tariff issue at a press conference at Sonargaon Hotel in the evening.

Bangladesh state minister said that there will be no capacity payment which means that if Bangladesh does not import electricity, then it does not need to pay anything.

‘It’s a win-win deal, we both sides are happy,’ said Nasrul Hamid, adding that both countries are hopeful of inking a deal within a month in this regard.

Manik Dey said since there is no capacity payment, Bangladesh will get as per its need up to 100 MW. He said that was the reason the tariff is higher than previous rate.

Bangladesh has been importing 500 MW of electricity from India for more than a year -half of it from Indian public sector and half from Indian private sector with an average tariff rate of Rs 4 per unit - nearly 40 percent less than the new tariff for the electricity from Tripura.

Earlier, Bangladesh fully completed construction of a high voltage transmission line for importing 100MW electricity from a Palatana power plant.

The neighbouring nation promised to export the 100MW power as Bangladesh helped in building the 700 MW power plant by allowing shipment of equipment through Bangladesh territory without charging any tax or transit fee.

But electricity from the eastern Indian state is not coming until a power purchase agreement is signed between Dhaka and New Delhi.

The settlement of power tariff paved the way for starting import of electricity. Once the deal is signed, import can begin.