India Expresses Interest in Myanmar Power and Transmission Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--A team of high-ranking Indian officials representing hydroelectric power-generating company NHPC Limited (BSE:533098) (Faridabad, Haryana) and Power Grid Corporation of India Limited (BSE:532898) (PGCIL) (New Delhi), which is India's state-owned central transmission utility (CTU), visited the Southeast Asian country of Myanmar to discuss possibilities for power generation and transmission projects in the country.

According to the project plans, India wishes to breathe new life into two incomplete power projects in Myanmar--the 1,200-megawatt (MW) Tamanthi and the 642-MW Shwezaye projects--both hydroelectric power plants on the Chindwin River.

The Myanmar government initially had signed a memorandum of understanding with NHPC in 2004 for developing the Tamanthi Dam in the northwestern region of Saigang; a new agreement between the two was again signed on September 16, 2008. As per the new agreement, the Burmese Department of Hydropower Implementation will develop the Tamanthi and Shwezaye dams in a joint venture effort.

The Tamanthi Dam is expected to cost an estimated $3 billion. Post-completion, the dam would greatly aid in the control of floods and provide much-needed water to irrigate the surrounding areas.

The Chindwin River, which is the largest tributary of the Irrawady, Myanmar's most important river and waterway, originates in the Hukawng Valley, which is in the northeastern state of Kachin.

Talks about the revival of the two projects have been taking place between the two countries, and a memorandum of understanding is expected to be signed by the end of this calendar year.

According to sources, the peripheral reason for the Indian team's visit is to strengthen diplomatic and economic relations with Myanmar, a country rich in natural gas resources. With a strategic industrial tie-up with Myanmar, India not only hopes to gain access to the huge reserves of natural gas (amounting to 89.7 trillion cubic feet, of which more than 18 trillion cubic feet of gas are proven reserves), but also to present decent competition to China, which is a country slowly gaining a foothold in Myanmar's industrial sector.

Sudhir Kumar, the Joint Secretary for the Indian Ministry of Power, declined to comment on the matter to local media, but NHPC Chairman and Managing Director S.K. Garg confirmed the planned trip, adding that the survey and investigation work were yet to be finished and finer details were yet to be worked out.

"A transmission link for the evacuation of power is expected to be set up," a PGCIL executive said. "We had submitted a report on the transmission of power around one-and-a-half years back."

Once the power projects are completed, a major portion of the power generated (nearly 80%) would be transmitted back to India. In Myanmar, the power would mostly be used in the Monywa mining project.

A transmission line that links Myanmar and India also would enable all the South Asian Association for Regional Cooperation (SAARC) countries--comprising India, Pakistan, Nepal, Bhutan, Myanmar, Bangladesh, Sri Lanka, Afghanistan and the Maldives--to be interconnected to one another.

K. Ramanathan, distinguished fellow at the Energy and Resources Institute of New Delhi, said: "We have similar plans with Nepal and Bhutan. However, in the case of Myanmar, the challenges are many, especially from the evacuation point of view. There are also geopolitical and technical challenges."

Myanmar currently has a total population of nearly 50 million people. The country's total installed hydroelectric power generation capacity stands at 747 MW, a very small number compared to its hydroelectric power generation potential of 39,720 MW.

According to the U.S. Energy Information Administration, Myanmar's total installed electricity generation capacity stands at 1,413 MW as of 2007.

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