DHAKA: To bolster bilateral energy ties, Bangladesh has suggested setting up of a thermal power plant through a joint venture in India.

In this regard, Bangladesh has proposed that a coal block could be allocated to the joint venture entity while power generated from the plant could be supplied to Bangladesh.

The proposed plant would be on the lines of 1,320 MW thermal project in Rampal -- being jointly developed by NTPC of India and Bangladesh Power Development Board (BPDB), reports business-standard.com.

Tawfiq Elahi Chowdhury, Energy and Power Advisor to Prime Minister Sheikh Hasina, told PTI "We have proposed that if we are given a coal block (by the Indian government) in India, then we could develop a power plant through a joint venture, in the same way as we are doing in Rampal,".

The proposal was discussed during Chowdhury's meeting with Power and Coal Minister Piyush Goyal in New Delhi this week.

According to Tawfiq Elahi, India is very positive about the proposal.

Bangladesh, which is looking to increase its electricity supplies to meet rising demand, has an installed capacity of around 13,000 MW.

When asked about the progress of the 1,320 MW Rampal plant, Chowdhury said the first 660 MW unit is expected to be ready in four years time.

Project activities at the site have already started.

The project is being implemented by Bangladesh-India Friendship Power Company Pvt Ltd, an equal joint venture between NTPC and BPDB.

Besides, India is supplying about 500 MW of electricity to Bangladesh and plans are on the anvil to increase the same to 1,000 MW.

BDST: 1012 HRS, DEC 13, 2014