Bangladesh Owes Rs 200 Crore in Unpaid Electricity Bills to Tripura: What Happens Next?
Tripura, a northeastern state of India, has been at the center of a growing electricity dispute with its neighboring country, Bangladesh, as the latter faces mounting arrears for electricity supplies. The state of Tripura has reportedly been left with an outstanding bill of over Rs 200 crore for the electricity supplied to Bangladesh, a situation that is becoming increasingly urgent. With no clear resolution in sight, the issue could affect the longstanding agreement between the two countries regarding cross-border energy supply.
As per Tripura Chief Minister Manik Saha, the situation is getting critical as Bangladesh’s debt continues to rise. Tripura has been supplying 60-70 MW of electricity to Bangladesh under an agreement between the Tripura State Electricity Corporation Limited (TSECL) and the Bangladesh Power Development Board (BPDB). This power supply, facilitated by the NTPC Vidyut Vyapar Nigam Limited, has been ongoing since 2016. However, with the unpaid dues growing daily, the future of this energy exchange is uncertain.
The Growing Debt: What’s at Stake?
Since March 2016, Tripura has been providing electricity to Bangladesh, with power generated at the ONGC Tripura Power Company’s (OTPC) gas-based 726 MW power plant in Palatana, southern Tripura. Despite this long-standing arrangement, Bangladesh has failed to clear its outstanding bills, amounting to Rs 200 crore.
The failure to pay the dues has raised concerns in Tripura. The Chief Minister, Manik Saha, made it clear that the government is unsure how long they can continue supplying power under these circumstances. “We hope they will clear their dues so that the power supply is not disrupted,” Saha said, according to reports. The Tripura government has not yet made a decision regarding the potential halting of electricity supply to Bangladesh, but the situation remains tense.
The Broader Impact on India-Bangladesh Relations
This unpaid electricity debt comes amid strained relations between India and Bangladesh, largely due to recent political tensions and incidents involving Hindu minorities in Bangladesh. The growing energy debt highlights the fragile state of cross-border economic relations between the two countries, with concerns over the potential disruption of energy supplies that could escalate tensions further.
Chief Minister Saha also expressed concerns over the political situation in Bangladesh, particularly after Sheikh Hasina, the former Prime Minister, fled to India in August, following the ousting of her government by a student-led movement. The political upheaval has led to increased unrest, and there are fears that it could spill over into neighboring regions, including Tripura, which shares a porous border with Bangladesh.
However, Saha assured that there had been no significant influx of people from Bangladesh into Tripura following the unrest. “We are closely monitoring the situation along the border,” he said, adding that there have been no major movements so far.
Will Power Supply Be Cut Off?
While Tripura’s government has yet to make a definitive decision on suspending power supply to Bangladesh, the issue has sparked significant debate. The idea of halting the electricity supply raises several concerns. On one hand, it could be seen as an important step in ensuring that Bangladesh pays its dues. On the other hand, it risks escalating tensions between the two nations, especially in a politically sensitive context.
In the past, India has faced energy supply issues due to non-payment from neighboring countries, such as Adani Power‘s reduction in supply to Bangladesh in August 2023. Adani Power had to cut down the supply from its Godda plant in Jharkhand due to non-payment of USD 800 million by Bangladesh, which highlights the ongoing challenge of unpaid energy dues in the region.
For Tripura, the electricity supply to Bangladesh is not just a matter of financial reimbursement but also political goodwill. The supply of power to Bangladesh was initiated as a gesture of gratitude, given the logistical support Bangladesh provided to bring critical machinery to Tripura. The close cross-border ties and cooperation between the two regions complicate any decision to cut off the supply.
The Importance of Cross-Border Connectivity
In the context of regional cooperation, electricity supply is just one aspect of the broader India-Bangladesh relations. Other cross-border initiatives, such as the railway link between Agartala and Akhaura, are seen as vital for improving trade and connectivity between the two countries. The 5.46 km rail link between India’s Agartala and Bangladesh’s Akhaura, inaugurated in November 2023, is expected to significantly reduce travel time between Agartala and Kolkata from around 30 hours to just 10 hours, benefiting both countries.
The Chittagong port has also become a crucial component of regional connectivity, with the potential to transform trade routes in India’s northeastern states. If Bangladesh allows uninterrupted use of the port, it would offer a significant advantage to the entire Northeastern region of India, enhancing economic ties with Bangladesh and other neighboring countries.
What Lies Ahead?
The next steps will depend on how the political and economic dynamics unfold in the coming weeks. Tripura is now faced with the challenge of balancing the need for financial reimbursement with the necessity of maintaining strong diplomatic ties with its neighboring country. With Bangladesh’s rising debt and India’s interest in maintaining peaceful cooperation with its neighbor, the outcome of this dispute will likely shape the future of India-Bangladesh energy relations.
The ultimate question remains: Will Bangladesh clear its dues before the situation worsens, or will Tripura be forced to take a harder stance in defense of its interests?