• IBFP is a cross-border energy pipeline that connects Siliguri in West Bengal, India to Parbatipur in Dinajpur district of Bangladesh.
• It has a capacity of transporting 1 Million Metric Ton Per Annum (MMTPA) of High-Speed Diesel (HSD) from India to Bangladesh.
• The pipeline is aimed at enhancing energy cooperation between India and Bangladesh and strengthening people-to-people linkages between the two countries.
• The construction of the pipeline was started in September 2018.

Importance of IBFPL to Bangladesh

Ans. Looming energy crisis

• Bangladesh is facing a significant energy crisis that threatens to impede its growth.
• The country has frequent power cuts, even in the capital, Dhaka, which has had a negative impact on key export industries such as the ready-made garments sector.
• To address this problem, the Indian government has initiated several projects to help Bangladesh meet its growing energy demands.
• The IBFPL is one such project that will play a vital role in addressing the country’s energy deficit.
• The pipeline will transport diesel quickly into Bangladesh, thus ending the country’s reliance on importing petroleum product in oil tankers by road and rail from India.

Other projects to meet Bangladesh’s energy demands

• Maitree project: The US $2 billion worth project is being built under a concessional financing scheme offered by India to Bangladesh. The first unit of the Maitree Super Thermal Power Production in Bangladesh’s Khulna province is already supplying 660 MW to the country’s national grid.
• Power import: Bangladesh is also awaiting power from the Adani Group’s 1600 Megawatt thermal power station at Godda in Jharkhand. Talks are currently underway to import at least 600 MW of power from this plant to meet Bangladesh’s peak summer demand.
• BIFPCL: The two countries set up the Bangladesh India Friendship Power Company Limited (BIFPCL), a 50:50 joint venture between India’s National Thermal Power Corporation and Bangladesh Power Development Board. Once completed, this will be Bangladesh’s largest power plant.

Why is India helping Bangladesh?

Ans. To offset Bangladesh’s dependence on China

• India’s assistance to Bangladesh in meeting its energy needs is also aimed at offsetting that country’s dependence on China.
• Chinese investments in Bangladesh’s energy sector stand at US $8.31 billion.
• Beijing has also offered to help Bangladesh transition to renewable sources.

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