Khulna Power Company Ltd. (KPCL) plans to establish a 30 MW solar power plant to regain profitability following a net loss of Tk 66 crore in FY23. KPCL, which currently relies on its subsidiary, United Payra Power, for income, aims to reduce dependence by venturing into solar power.
The company’s two major plants, KPCL Unit-II and Unit-III, were idle for ten months but resumed operation in March 2022 under a renewed government agreement expiring in March 2024. Facing uncertainties, KPCL seeks income diversification. Despite doubts raised by auditors about the company’s future viability, KPCL aims to secure government approval for its expiring power plants. The company received a Tk 23.17 crore dividend from United Payra Power for FY23, providing some financial support. However, KPCL faces challenges, including delayed government payments and doubts about debt recovery.
In April 2022, KPCL sold its 110 MW barge-mounted power plant for $1.32 crore, with a residual amount under discussion for recovery. As of Wednesday, KPCL shares closed at Tk 26.60 on the Dhaka Stock Exchange.