Bangladesh has signed a deal with an Indian state run company to build a USD 1.5 billion coal fired power plant to help ease a severe shortage. The plant is expected to open in 2016 and produce daily 1,320 megawatts of electricity.

Bangladesh's Power Development Board chairman Mr Alamgir Kabir and Mr Arup Roy Choudhury of India's National Thermal Power Corp signed the agreement in Dhaka on Sunday.

Bangladesh relies on decades old gas fired plants. A daily shortfall of about 2,000 megawatts is blamed for hampering the economy.

With about 3.3 billion tonnes of coal reserves, the country of 150 million people is looking into options for coal fired power plants.

The government said that the economy is expected to grow by more than 6 percent this year.

(Sourced from Associated Press)