Power cuts may hamper new investment

The Advisers Council Committee on Government Purchase (ACCGP) has approved the procurement of two cargos of Liquefied Natural Gas (LNG) and 120,000 tonnes of fertilizer to meet rising demand in Bangladesh. Each LNG cargo, approximately 3.36 million mmBtu, will be sourced from M/S Total Energies Gas and Power Limited, Switzerland.

Bangladesh's interim government accuses Adani Power of breaching a 2017 power deal by withholding tax benefits from its Godda plant, which supplies energy to Bangladesh at significantly higher costs than similar deals.

The Payra Thermal Power Plant in Patuakhali has temporarily halted operations for maintenance and to facilitate the test commissioning of a nearby $2.5 billion coal-fired power plant by RPCL-Norinco International Power Limited (RNPL). The new 1,320 MW plant, located two kilometers away, will undergo testing of its transmission lines, requiring a shutdown of the Payra-Gopalganj line for up to 75 days.

The National Board of Revenue (NBR) has revoked the indefinite tax exemption on loan interest for SS Power Limited, a subsidiary of S Alam Group, effective January 2024. The exemption, granted since March 2019, ends following an SRO issued on 17 December.

The government will procure soybean oil, lentils, LNG, and fertilisers to meet domestic demand. The Advisors Council Committee on Government Purchase, chaired by Finance Adviser Dr Salehuddin Ahmed, approved proposals for these procurements.