A major Indian state-owned company Bharat Heavy Electricals Ltd (BHEL) has won a huge contract to build a $1.6 billion power plant in Bangladesh, beating Chinese competitor Harbin Electric International Company Ltd.

BHEL will sign the contract on Feb. 28, officials from New Delhi and Dhaka confirmed. The contract will give BHEL the sole right to construct a 1,320-megawatt (MW) thermal power station in Khulna in southern Bangladesh.   

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China's Harbin Electric International Company Ltd, whose bid was rejected, is a major player in the power plant industry. It has power projects in Iran, Turkey and Indonesia among others countries. The company is among the three largest power plant equipment manufacturers in China.

A top official in Dhaka on condition anonymity disclosed to a local journalist that Harbin Electric International Company's bid fell short on technical grounds and hence it was rejected.       

The latest Indian commercial triumph comes after Bangladesh cancelled a port project with a Chinese company early last month. Dhaka reportedly cancelled the port project at the behest of New Delhi.

India perceives China's efforts to build development projects across the Indian Ocean as a move to surround it. China is already in the process of building a huge port in Pakistan and Sri Lanka. Experts have described this Chinese strategy as a 'string of pearls'.             

China's increasing presence in the Indian Ocean region has prompted the Indian government to warm up its relationship with all its neighbors, especially with Bangladesh and Sri Lanka, as New Delhi can still diplomatically influence both countries.

The move seems to have paid off as both Sri Lanka and Bangladesh have apparently become quite distance from Beijing in recent months. Much to the delight of New Delhi.  

TagsBangladesh, India, china