A change in India’s power export rules
- August 20, 2024
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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A change in India’s power export rules
Sub: Geo
Sec: Eco Geo
Context:
- Adani Power emphasised their commitment of supplying electricity to Bangladesh, stating that the recent amendment does not affect its existing contract.
Amendment:
- Recently, an amendment was introduced to India’s power export rules.
- It allows Indian power exporters to reroute their output to Indian grids if there is a delay in payments from partner countries.
About Godda project:
- The Godda plant is India’s first transnational power project that supplies all the power generated to another nation.
- The ultra super-critical thermal power plant in Godda supplies 1,496 MW of power to Bangladesh.
- This power transfer is facilitated under a Power Purchase Agreement (PPA) entered with the Bangladesh Power Development Board (BPDB) in 2017 for a period of 25 years.
Criticism about the project:
- The project has been criticised for the use of coal imported from the Carmichael mine in Australia into India to produce power for Bangladesh.
- This has led to excessive prices compared to domestic plants.
Why does Bangladesh need imports?
- The power plants in Bangladesh are underutilised.
- This situation was exacerbated by the global energy crisis following Russia-Ukraine war.