BPC to import diesel via India

The government is expected to save about $36.91 million over 15 years by importing diesel through a pipeline from Shiliguri in India instead of traditional sources.

The move is also expected to save time, according to the energy and mineral resources division.

Last week, the cabinet committee on purchase approved a proposal for importing 5.05 lakh tonnes of diesel to Parbatipur in Bangladesh from Shiliguri marketing terminal of India's state-owned Numaligarh Refinery through the Indo-Bangla friendship pipeline, which is being built. 

The premium, which is the cost of shipping petroleum products and includes freight charges and insurance, was fixed at $5.5 per barrel, so the total outlay would come to $207.20 million, which is about Tk 1,678 crore.

Traditionally, diesel is imported through the Chittagong port and then taken to Daulatpur in Khulna in oil tankers. From there, it is taken to Parbatipur by rail wagons. The whole exercise costs $6.48 per barrel as premium.

So to import 5.05 lakh tonnes of diesel through this process, it would cost the Bangladesh Petroleum Corporation (BPC) $244.11 million, according to the proposal.

This is the first time that diesel will be brought in through this arrangement, and a preliminary agreement was already signed on this during Prime Minister Sheikh Hasina's visit to India in April this year.

Another Indian private sector company, Shapoorji Pallonji Infrastructure Capital Company Ltd, is going to set up a 100 megawatt solar power plant in Pabna.

Last week, the same committee approved the proposal for setting up the power plant. The government will buy electricity from the company at Tk 9.56 Kw/h for 20 years. The company first proposed to set up a 200MW solar power plant but later it changed the proposal to a 100MW solar power plant after failing to find the necessary land.