Govt Likely to Remove Advance Tax on Fuel Oil Imports

S Alam Group's 1320 MW Banshkhali power plant is set to contribute more electricity to the national grid in Bangladesh. According to a press release from the group, the SS Power Plant, located in Banshkhali, Chattogram, is expected to provide its maximum capacity of electricity to the grid within the next June 24, ahead of Eid-ul-Azha. Currently, the plant is supplying a maximum of 200 MW of electricity.

The electricity supply from Indian Adani Group's Godda 1600MW Thermal Power Plant to Bangladesh was disrupted due to a transmission line fault, worsening the country's ongoing power crisis. Bangladesh had been relying on increased power imports from the plant to bridge the widening demand-supply gap caused by the closure of the Payra power plant due to fuel shortages.

The power sector in Bangladesh is facing a severe energy crisis, with high rates of load shedding throughout the day due to insufficient production to meet the demand. In a span of just four days (3 June -6 June 2023), the record for maximum load shedding was broken three times, reaching up to 20-22% of total demand during peak periods.

In response to prolonged load shedding causing inconvenience to the population, the prices of IPS and generators have seen a substantial increase. Complications in importing via LC have restricted supply, driving up demand and forcing traders to sell at higher prices. The country's largest IPS and generator market, Nawabpur Road Market, has witnessed significant price hikes.

With 49 out of 153 power plants in Bangladesh operating at full capacity, the country is grappling with ongoing power outages exacerbated by scorching summer temperatures. Maintenance and fuel shortages have forced the closure of 53 additional plants, totaling 4,930 megawatts of capacity.

Adani, an Indian power company, has encountered payment difficulties as the Power Development Board (PDB) in Bangladesh grapples with a shortage of dollars. Adani supplied 700-750 MW of electricity during the trial production period, totaling around 1.5 million units to PDB.