The Asian Development Bank (ADB) will provide $120 million loan to upgrade the India-Bangladesh electricity network. Once completed, this will allow Bangladesh to meet its increasing power demand and support power exchanges across South Asia. The loan will be used to double the capacity of the existing inter-grid connectivity which links the power grid of western Bangladesh at Berhamara with the power grid of eastern India at Baharampur.
The two electricity networks were first connected in December 2013 under a previous ADB project under which India exports 500 MW power to Bangladesh. ADB said Bangladesh’s fast-growing economy has soaring energy needs but domestic natural gas supplies cannot keep up with demand, resulting in an increasing dependence on oil and diesel-based plants.
To meet its goal of providing electricity for all by 2021, the government is working to increase generating capacity and to source additional supply. The initial linking of the two national grids helped India deliver over 2,000 gigawatt hours of electricity across the border in 2014.
In addition to Bangladesh, India also has transmission links with Bhutan and Nepal and engages in bilateral electricity trades.
What is SASEC?
South Asia Subregional Economic Cooperation (SASEC) – It is a program to promote regional prosperity and improve economic opportunities through strengthened cross-border links in trade, power, road and rail networks. Its members are Bangladesh, Bhutan, India, the Maldives, Nepal and Sri Lanka.
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Who is the present President of ADB?
