DHAKA: Top Indian conglomerates Reliance and Adani plan to invest billions of dollars in Bangladesh’s rickety power sector, officials announced.

The two companies will sign memorandums of understanding with Bangladesh’s Power Development Board.

“The MoUs will be signed Saturday,” PDB chairman Shahinul Islam Khan said, adding that “the deals are non-binding and are still in primary stage.”

“The two companies have planned to invest around $5 billion,” Khan said.

Reliance would set up a 3,000 megawatt capacity gas-fired power plant by importing LNG (Liquefied Natural Gas), he said, adding the company has not yet decided the location for the plant.

He added Adani would set up a 1,600 megawatt coal-fired power plant at southern Bangladesh island of Maheshkhali, which is identified as a new power hub for energy-starved Bangladesh.

Japan recently announced a plan to invest billions in a coal-fired power plant on the island.