Under the deal, India will start exporting power up to 500MW to Bangladesh by late 2012. BPDB will import power through PGCIL’s regional transmission system.

PGCIL will own, operate and maintain a 400kV double-circuit transmission line to exchange the 500MW power between the two countries. The power and transmission tariff will be specified by the Central Electricity Regulatory Commission of India and BPDB will pay the transmission tariff on a monthly basis.

Alamgir Kabir, head of BPDB, was quoted by AFP as saying that it is a landmark deal and will help ensure energy security for Bangladesh and ease the acute power crisis.