Three state-run banks—Agrani, Janata, and Rupali—exceeded their lending limits by disbursing Tk 10,579 crore to salvage a stalled coal-fired power plant project of Orion Group’s subsidiary, thanks to policy relaxations by the previous government. The loans, sanctioned under the now-ousted Sheikh Hasina administration, were not disbursed as Orion Group decided to shift the project to solar power. This decision followed the central bank’s relaxation of the single borrower exposure limit for coal-based power projects. Orion Group, which already had Tk 6,244 crore liabilities with the banks, sought these loans after failing to secure foreign funds. The move raised concerns about governance, as state-run banks, already burdened with high defaulted loans and capital shortfalls, took on additional risks. Orion Group has since requested the cancellation of the coal project loans and is pursuing new financing for solar and renewable energy projects.
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