Govt Reduces Diesel and Kerosene Prices by Tk 1 per Litre

Controversies surrounding the Adani power deal have resurfaced, but less attention has been given to the SS Power plant, owned by a private Bangladeshi group, despite its high costs. In FY 2023-24, SS Power's capacity was only utilized at 21%, yet it incurred a Tk 3,288 crore capacity charge. Ramphal Power Plant, with 24% utilization, faced a Tk 2,237 crore charge. Other plants like Barishal Electric (30%), Payra (65%), and Adani’s (61%) also reported high capacity charges, with Adani costing Tk 5,392 crore. Overall, five coal-based plants incurred Tk 15,686 crore in capacity charges.

Customs-related irregularities have been uncovered in Bangladesh's power imports from India's Adani Group, with officials bending legal procedures to evade significant taxes.  Since April 2022, Bangladesh has imported power from Adani's 1,600MW coal-fired plant in Jharkhand without obtaining necessary tax-exemption orders. No bill of entry has been submitted to customs for these imports, raising concerns. An independent body has been formed to scrutinize the power deal following allegations of inflated tariffs. 

Bangladesh is facing daily load shedding of 2,000-3,000 megawatts due to a significant gap between electricity demand and production. Despite this shortage, six furnace-oil power plants with a combined capacity of 600 MW remain idle as the government has not yet decided on their continued operation under a "no-electricity, no-payment" mechanism. Experts suggest that restarting these plants could alleviate a third of the load shedding without requiring new investment.

Bangladesh is facing a 2000 MW load shedding crisis due to financial mismanagement and heavy reliance on imported fuel, leaving the government unable to secure enough primary fuel for power plants. Despite having the capacity to generate 24,000 MW, the country is currently producing only 10,500 MW, leading to a significant shortfall.

The interim government plans to gradually pay Chevron's $225 million outstanding dues over the next year while ensuring regular cash payments for newly supplied gas. Currently, Chevron supplies gas worth an average of $40 million per month.

Russia has demanded that Bangladesh pay $630 million in outstanding and current interest on a $12.65 billion loan for the Rooppur Nuclear Power Plant by September 15. The loan, carrying a maximum interest rate of 4% and a 2.4% penalty for overdue payments, requires settlement in US dollars or Chinese yuan through the Bank of China.