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PM Modi’s visit to Bangladesh between March 26 to 27 in 2021 cements India’s ‘Neighbourhood First’ policy. Through this policy, India intends to project herself as a country that wants to share that wealth with its neighbours. India feels that a prosperous and safe neighbourhood equals a successful and secure India.
Historic energy-related cooperation between India and Bangladesh
We know that energy supply problems have hampered India’s and Bangladesh’s economic progress. Both countries have had severe power shortages, but India, in particular, is anticipating a continuous demand for power and hydrocarbon resources in the foreseeable future.
Energy consumption is increasing in India and Bangladesh, the world’s second and seventh-most populated countries, due to stronger economic growth, stable population growth, and fast urbanisation.
However, both nations faced major supply limits in the medium to long term due to limited stocks of local hydrocarbons, conventional, and other renewable energy resources. The age-old goal of swadeshi, or “self-sufficiency,” is no longer a viable goal.
India’s new foreign policy prioritises maintaining control over relationships with countries that can provide much-needed gas and oil.
Details of PM Modi’s visit to Bangladesh
Both Prime Ministers emphasised the necessity of greater integration of power and energy supply chains and bilateral collaboration in energy efficiency.
They acknowledged the strong momentum in the India-Bangladesh power sector partnership and the progress made thus far toward Bangladesh’s goal of ensuring power for long-term growth.
They estimated that 600 MW of electricity presently transfers between India and Bangladesh via the two existing linkages at Bheramara-Berhampur and Tripura-South Comilla.
The two Prime Ministers emphasised the need for a sub-regional partnership for mutual benefit in power, water resources, trade, transportation, and connectivity. They praised the creation of a Trilateral Memorandum of Understanding for Cooperation in the Field of Hydroelectric Power between Bangladesh, Bhutan, and India, emphasising that it would be signed in the presence of the presidents of all three countries.
The prime ministers decided to improve bilateral energy cooperation through a joint declaration between Bangladesh and India. They lauded the signing of a Memorandum of Understanding (MOU) between India’s Energy Efficiency Services Ltd (EESL) and Bangladesh’s Sustainable and Renewable Energy Development Authority (SREDA).
Both Prime Ministers applauded the signing of an MOU between Petrobangla and Petronet to build a Joint Venture Regasification LNG Terminal on Kutubdia Island.
Impact of PM’s visit on energy-related cooperation
During PM Modi’s visit to Bangladesh, the Prime Minister attended many programs, visited the 1971 Liberation War Memorial, and conducted lengthy conversations with Hasina on energy-related cooperation. India has positioned itself as a vital partner in Bangladesh’s energy industry, as seen by the pacts inked and promises outlined in the joint statement.
As he explored possibilities for Indian firms in power production, distribution and transmission, the PM stated that India would work with Bangladesh to attain its 24,000 megawatts (MW) installed capacity by 2021.
India promised to increase energy exports from 500 MW to 1,000 MW shortly. Modi agreed to investigate Bangladesh’s request by building an additional network connection in western India. It will allow India to import more power to Bangladesh progressively.
The two countries have agreed to construct an 800 KV, 7000 MW HVDC DC grid link through Bangladesh to transmit power from northeastern India to Muzaffarnagar in India. The PM signed another deal to construct a pipeline from Bengal to Bangladesh.
Reliance Power, a private enterprise, has committed to offering the Bangladesh Power Development Authority 3,000 megawatts of power for $3 billion. Adani Power Ltd. plans to invest more than $1.5 billion in constructing two coal power plants with an installed power of 1,600 MW.
Conclusion
The two nations inked a host of agreements aimed at improving regional connectivity (a key priority of India), partnering in the power industry, and establishing a special economic zone in Bangladesh to attract investments and balance trade imbalances.
According to the joint statement, India and Bangladesh agreed to have an annual conversation “to seek comprehensive energy sector collaboration, including coal and gas, sub-regional petroleum product delivery, renewable energy, and oil and gas pipelines.”
India has promised to educate Bangladeshi employees in civilian nuclear power technology. Bangladesh currently has access to electricity, but the government is working to boost energy from renewable sources such as solar power.
