Govt Approves Tk 164.84 Billion Deals for Fuel and Fertilizer

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.

In the first month of the current fiscal year, disbursement of agricultural loans fell by nearly 10% year-on-year, totaling Tk 17.90 billion compared to Tk 19.91 billion in July 2023, as reported by Bangladesh Bank (BB). This decline is attributed to disruptions from student-led movements, internet shutdowns, and curfews in July. Despite the decrease, bankers anticipate a gradual increase in loan disbursement as conditions improve.

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.

Kazi Farms, in partnership with Kazi Media Limited and Kazi Food Industries Limited, has donated BDT 1,21,88,838 to the Chief Advisor's Fund for Flood Relief. The donation, presented on September 9 to Faruk-E Azam, Honourable Advisor for the Ministry of Disaster Management and Relief, was the result of employees contributing one day's salary, matched by their employers.