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Power Division seeks Tk 4,631 crore to ensure uninterrupted power supply
Published : Tuesday, 15 September, 2026 at 11:25 AM
Observer Online Report
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The Power Division has sought Tk 4,631.57 crore in outstanding subsidy to cover the gap between the cost of buying and selling electricity from two coal-fired power plants.
The money is needed for the RNPL power plant in Patuakhali and the Matarbari coal-fired power plant in Cox’s Bazar.
The division has asked the Finance Division to urgently provide the money to the Bangladesh Power Development Board (BPDB) to ensure uninterrupted power supply in the national interest.
The request was made in a letter sent by the Development-1 branch of the Power Division to the Finance Division secretary on September 9.
According to the letter, the BPDB buys electricity from private power plants, rental power plants, public companies, and India and Nepal at higher prices and sells it to large consumers at lower prices. The government provides financial support from the revenue budget to cover the resulting losses.
The support helps the BPDB regularly pay electricity bills and keep power generation running by importing fuel oil and coal.
RNPL subsidy arrears
The Economic Affairs Cabinet Committee approved in principle on May 7 the inclusion of electricity from joint-venture power plants, Adani Power Jharkhand, and electricity imported from India and Nepal under the subsidy scheme.
The first unit of the RNPL power plant in Patuakhali started commercial operation on September 30, 2025, while both units started combined commercial operation on May 28, 2026.
Under the power purchase agreement, the BPDB has been paying for the capacity and electricity generated by the first unit since its commercial operation began. Payments for both units are being made since their combined commercial operation.
Based on the committee’s approval, the Power Division has requested subsidy for the period from September 30, 2025 to May 2026.
Matarbari subsidy arrears
The two units of the Matarbari coal-fired power plant began commercial operation on August 29, 2024.
The government approved a temporary electricity price for both units, and the BPDB has been paying for their capacity and electricity generation since the commercial operation date.
However, the subsidy required to cover the gap between electricity purchase and sale costs from August 29, 2024 to May 2026 has not yet been provided to the BPDB.
The Power Division estimates that Tk 4,631.57 crore is required to cover the outstanding subsidies for the two plants.
Money needed to repay loan
The Power Division said the RNPL plant also needs money to repay an overseas loan and maintain sufficient coal stocks.
The BPDB and RNPL signed a power purchase agreement on February 20, 2011, followed by an implementation agreement on April 8, 2019.
A group of lenders led by China Exim Bank provided loans for the project, with the Bangladesh government providing a sovereign guarantee for 50% of the loan.
Under the guarantee, Bangladesh paid $139.94 million, or around Tk 1,722.48 crore, as the first instalment of principal and interest on March 25.
The second instalment of $136.13 million, or around Tk 1,688.03 crore, is due by September 30.
RNPL has warned that failure to repay the second instalment on time could create a default situation under the sovereign guarantee provided by the government.
The Power Division said timely payment of subsidies against RNPL’s monthly electricity bills would help repay the loan instalment and maintain enough coal for the plant.
Subsidy may reduce load-shedding
The Power Division said ensuring fuel supplies to the two plants and maintaining uninterrupted power generation are urgent during the current crisis.
In the letter, it requested the Finance Division to take necessary steps to provide Tk 4,631.57 crore to the BPDB as subsidy for the outstanding amounts for the two plants.
Contacted, Power Division Deputy Secretary Mohammad Solaiman told Jago News that the division had sought the money from the Finance Division for the outstanding subsidies but had not yet received any response.
He said the money was being sought as government subsidy.
Asked about the impact of receiving the money, Solaiman said the two plants would be able to operate at full capacity.
The money is needed for the RNPL power plant in Patuakhali and the Matarbari coal-fired power plant in Cox’s Bazar.
The division has asked the Finance Division to urgently provide the money to the Bangladesh Power Development Board (BPDB) to ensure uninterrupted power supply in the national interest.
The request was made in a letter sent by the Development-1 branch of the Power Division to the Finance Division secretary on September 9.
According to the letter, the BPDB buys electricity from private power plants, rental power plants, public companies, and India and Nepal at higher prices and sells it to large consumers at lower prices. The government provides financial support from the revenue budget to cover the resulting losses.
The support helps the BPDB regularly pay electricity bills and keep power generation running by importing fuel oil and coal.
RNPL subsidy arrears
The Economic Affairs Cabinet Committee approved in principle on May 7 the inclusion of electricity from joint-venture power plants, Adani Power Jharkhand, and electricity imported from India and Nepal under the subsidy scheme.
The first unit of the RNPL power plant in Patuakhali started commercial operation on September 30, 2025, while both units started combined commercial operation on May 28, 2026.
Under the power purchase agreement, the BPDB has been paying for the capacity and electricity generated by the first unit since its commercial operation began. Payments for both units are being made since their combined commercial operation.
Based on the committee’s approval, the Power Division has requested subsidy for the period from September 30, 2025 to May 2026.
Matarbari subsidy arrears
The two units of the Matarbari coal-fired power plant began commercial operation on August 29, 2024.
The government approved a temporary electricity price for both units, and the BPDB has been paying for their capacity and electricity generation since the commercial operation date.
However, the subsidy required to cover the gap between electricity purchase and sale costs from August 29, 2024 to May 2026 has not yet been provided to the BPDB.
The Power Division estimates that Tk 4,631.57 crore is required to cover the outstanding subsidies for the two plants.
Money needed to repay loan
The Power Division said the RNPL plant also needs money to repay an overseas loan and maintain sufficient coal stocks.
The BPDB and RNPL signed a power purchase agreement on February 20, 2011, followed by an implementation agreement on April 8, 2019.
A group of lenders led by China Exim Bank provided loans for the project, with the Bangladesh government providing a sovereign guarantee for 50% of the loan.
Under the guarantee, Bangladesh paid $139.94 million, or around Tk 1,722.48 crore, as the first instalment of principal and interest on March 25.
The second instalment of $136.13 million, or around Tk 1,688.03 crore, is due by September 30.
RNPL has warned that failure to repay the second instalment on time could create a default situation under the sovereign guarantee provided by the government.
The Power Division said timely payment of subsidies against RNPL’s monthly electricity bills would help repay the loan instalment and maintain enough coal for the plant.
Subsidy may reduce load-shedding
The Power Division said ensuring fuel supplies to the two plants and maintaining uninterrupted power generation are urgent during the current crisis.
In the letter, it requested the Finance Division to take necessary steps to provide Tk 4,631.57 crore to the BPDB as subsidy for the outstanding amounts for the two plants.
Contacted, Power Division Deputy Secretary Mohammad Solaiman told Jago News that the division had sought the money from the Finance Division for the outstanding subsidies but had not yet received any response.
He said the money was being sought as government subsidy.
Asked about the impact of receiving the money, Solaiman said the two plants would be able to operate at full capacity.
“Load-shedding will certainly decrease,” he said. “If the power plants operate at full capacity, load-shedding will decrease.”
-AJM
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Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Advertisement: 41053012; 01793317829, 01550707291, E-mail: [email protected], [email protected] Online: email: [email protected] 41053014; 01550707297 Advertisement: 01550707296
