To win the large project in its neighborhood and to counter aggressive Chinese companies, the Indian government made changes in the law and allowed Exim Bank to offer concessional finance to Indian companies bidding for strategically important projects abroad. After the diplomatic intervention, BHEL won the bid for the project. Part of the interest on the loan for this project will be borne by the government.
On April 11, an agreement was signed with Exim Bank to provide loan up to US$ 1.6 billion for financing the 1320MW Maitree Super Thermal Power Project. The project is located at Rampal in Bagerhat District of Khulna division in Bangladesh.
"Bangladesh-India Friendship Power Company (Pvt.) Limited (BIFPCL), a 50:50 Joint Venture Company between NTPC Limited and Bangladesh Power Development Board (BPDB), has issued Notice to Proceed (NTP) to BHEL for executing the contract for 1320 MW (2 x 660 MW) Coal-based Maitree Super Thermal Power Project," a National Thermal Power Corporation statement said.
Earlier this month, India signed a bilateral agreement to build a 131-kilometer pipeline to carry diesel and natural gas to Bangladesh at a cost of $46 million. The Indian government will bear all the expenditure for the pipeline.