B Mirror Desk : The power purchase agreement from two power plants of Khulna Power corporation Limited (KPCL), a publicly traded energy and power sector corporation, has long been non-operative on the part of the government. In accordance with the Bangladesh Power Development Board’s (BPDP) directives, the corporation has chosen to cut off its connection to the national grid.

Sources from the Dhaka Stock Exchange (DSE) disclosed this information.

The source claims that a few years ago, BPDP’s power purchase deal from the 40 MW power plant KPC 40 MW Noapara plant in Noapara, Jessore, and the 115 MW power plant KPC-2 in Khulna expired. Following the company’s numerous lobbying attempts, the government consented to repurchase power from Khulna Power. The two centers’ plants were authorized to be operated.

The agreement did, however, abolish the prior capacity charge requirement, which required the government to pay the corporation a minimum amount even if it chose not to purchase power. Rather, the agreement states that if electricity is required, the government will purchase it and then pay for it. The business can therefore run its equipment on a “no electricity, no money” basis.

But for a long period, the government kept the corporation in the dark about any need for electricity. Consequently, the business was unable to generate or market any electricity. Additionally, that contract ended on March 24 of last year. It was not until April of this year that the government decided to renew that deal.