The Asian Development Bank (ADB) will finance India-Bangladesh electricity network with $120 million loan as a part of inter-connection project South Asia Subregional Economic Cooperation (SASEC) Program. The new transmission capacity between two inter connected networks will be 1000MW.
- The project is expected to be completed by June 2018.
REASON FOR LOAN
To help Bangladesh to meet its goal of providing electricity to all by 2021 and support power exchanges across South Asia.
- Amount is required to double the capacity of the inter-grid connectivity which links the power grid of western Bangladesh at Berhamara with the power grid of eastern India at Bharampur.
- Electricity networks of both countries were first connected in December 2013 as a part of earlier ADB project under which India exports 500 MW power to Bangladesh.
- In 2014, during initial linking of national grids helped India to provide around 2,000 Gigawatt hours of electricity across border.
Apart from Bangladesh India has electricity trades and transmission linkage with Bhutan and Nepal.
South Asia Sub regional Economic Co-operation (SASEC) Programme aimed at improving cross-border links in trade, power, road and rail networks and strengthening regional economic cooperation.
- Formed in 2001
- Member countries – India, Bangladesh, Bhutan, Maldives, Nepal and Sri Lanka
- Headquarter – Manila, Philippines
- Secretariat – Asian Development Bank (ADB)