Thursday, May 14, 2009

Change in guard in Dhaka raises new hope for Bengal’s gas-based power stations

Santanu Saraswati

Five major gas-based power stations, which are lying idle since 80’s have once again started looking for re-generation. A change in guard in Dhaka has once again made the state power department hopeful of generating 100-mega watts of electricity from these five gas based turbines.

Though thought of running completely on gas-base, then state-run power utility, West Bengal State Electricity Board (WBSEB) had to run these units—at Kasba, Siliguri and Haldia on diesel, as Bangladesh Government declined permission for laying pipeline from Myanmar to West Bengal through its land. The WBSEB had to stop running these units after Bakreshwar thermal power unit started commercial generation as running those gas turbines on diesel were never cost effective.

The WBSEB, just to revive these sick units, even tried to hand over to privately run power distribution company CESC during late ‘80s, which ultimately showed no interest in taking these ‘white elephants’ on lease. Rather CESC found importing thermal power at cheaper price from private power traders.

Just before reconstructing the age-old WBSEB, the state power department, even tried to sell off these five gas-based turbines as per the recommendations of the multinational consultancy agency, PricewaterhouseCoopers (PwC). “We couldn’t sell off these units, nor could re-plan for using few acres of land lying with us at Kasba, Haldia and Siliguri. The establishment of democracy in Bangladesh once more made us hopeful. If bi-lateral talks between New Delhi and Dhaka succeed, we could have the gas line connected via Bangladesh from Dhaka,” an official with the state power department told Hindustan Times on Thursday.

There is another reason that made the state power department happy, as the Bangladesh Government was willing to electricity from West Bengal State Electricity Distribution Company Limited (WBSEDCL) to meet their deficit. They even expressed their willingness last year, but the state government didn’t respond to, as state power units were going through coal crisis and WBSEDCL, too, were not willing to sell electricity because of the political turmoil across the border.

The state power department official further observed that, if Bangladesh government agrees, WBSEDCL could even export power at a lower tariff. That would not only help the state transport department their required CNG supply, at the same time help the WBSEDCL start regeneration of 100 mega watts electricity from these five gas based stations.

The new Electricity Act, further, opened doors for private power players, initiating electricity generation. A WBSEDCL official on the basis of anonymity told Hindustan Times, that the power utility would first try to sell these gas turbines to private players. If the deal materialise, it’s ok. If not, then WBSEDCL even run these gas turbines on private-public-partnership mode, where the state-run power utility would provide infrastructure, the private player would take care of the generation. He said: “Chances of getting the pipeline is brighter, as Bangladesh even expressed willingness to buy power from Bhutan’s Chuka project, the unit that is run by the National Hydel Power Corporation. “

santanu_saraswati@hotmail.com

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