B Mirror Report: The Finance Division has released a subsidy of Tk 2,067 crore to clear outstanding bills of 94 private and rental power plants across the country. However, the allocation comes with strict conditions, including restrictions on using the funds to pay for imported electricity and directives to reduce capacity charges.
According to official sources, the subsidy has been provided under the revised budget for the 2025–26 fiscal year to settle dues of 85 independent power producers (IPPs) and nine rental power plants for the month of March. The funds are part of government efforts to address the financial shortfall in the power sector.
The Finance Division has clearly stated that the allocated funds cannot be used to pay electricity import bills, including those from India’s Adani Group and other foreign sources. This restriction has created uncertainty for the Bangladesh Power Development Board (BPDB), which has accumulated significant arrears in import payments.
Currently, BPDB owes nearly Tk 3,000 crore in unpaid electricity import bills, a large portion of which is due to Adani Power. The Indian company recently sent a letter demanding payment of $84.5 million by June, warning that delay charges would apply if payments are not made on time.
The Finance Division also instructed that the subsidy must be used strictly for the listed 94 domestic power plants and that all financial regulations must be followed. Detailed expenditure reports will be required for future subsidy approvals.
Officials said that the government has already disbursed Tk 26,000 crore in subsidies up to February this year, while the total allocation for the current fiscal year stands at Tk 37,000 crore. However, actual demand from the power sector is significantly higher.
The Finance Division further noted that capacity charges must be reduced to reasonable levels, and power purchase losses must be reported regularly. It also directed BPDB to implement ERP-based real-time data systems for better transparency.
Energy experts say the tightening of subsidy conditions may help improve financial discipline in the power sector, though it could also add short-term pressure on electricity production and supply stability.
The ongoing global energy crisis, rising fuel prices, and declining domestic gas output have already placed significant strain on Bangladesh’s power sector, making government subsidies essential to maintain uninterrupted electricity supply.
