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Dhaka Thursday,  Mar 28, 2024

VAT, duty waiver sought on import of Rampal machinery

EB Report

Power Division has sought waver of VAT and other duties on import of machinery and necessary equipment for implementing 1320MW coal-fired power project at Rampal near Sundarbans.

Power Division Secretary Monowar Islam in a letter to Chairman of the National Board of Revenue (NBR) Chairman Md Mojiburr Rahman requested to issue Statutory Regulatory Order (SRO) on withdrawal of CD, VAT and other duties in this regard.

He also requested the NBR chief to arrange an inter-ministerial meeting for taking a decision, if necessary. In the letter, the power division secretary said, the government has undertaken the coal-fired power project to generate 1320MW electricity by burning coal as the country cannot afford to supply gas to gas-fired projects for the same.

The country’s electricity generation capacity is around 11,265MW at present, he informed the NBR chairman. He added the government has a target to generate 40,000MW of electricity, of which around 20,000MW would come from coal-fired plants, he said. The government will implement coal-fired Rampal power project with equal share of Indian National Thermal Power Company (NTPC) as the Bangladesh Power Development Board (BPDB) has no experience to implement such a mega project, the power secretary said.

Prime Minister will supervise implementation of the project, he said, adding, the first unit of the project is expected to come into electricity generation in December, 2018. The power division has already signed an implementation agreement (IA) with NTPC and allowed to wave VAT and others duties, he said. “It would put a negative impact on power tariff if the matter is not settled,” Monowar Islam feared.

The government will appoint environmental and financial consultants to implement the power project.

The government will assess impact of the proposed 1320MW coal-fired power plant on the Sundarbans after the World Heritage Centre, Paris and local environmentalists have expressed concern over setting up power plant near the world’s largest mangrove forest.

The Ministry of Environment and Forest (MoEF) last week formed a 14-member high-powered inter-ministerial committee to prepare recommendations over impact of proposed Rampal Power Project (PP), impact of recent oil spill and protection of the Sundarbans, a natural world heritage site, and details report on Sundarbans.

The MoEF asked the committee to prepare its report by March 25, 2015. The project cost of the controversial 1320MW Rampal power plant has now been estimated at Tk 17,778.56 crore, which is Tk 3,194.95 crore more than the original amount.

The Rampal power project will be set up in joint venture of the Bangladesh Power Development Board (BPDB) and the National Thermal Power Company of India, with 30 percent investment on equal equity basis.

The rest of the fund would be mobilised as Export Credit Agency (ECA) loan. As per the new estimation, the equity sharing would also be increased to Tk 2,655.53 crore from Tk 2,176.29 crore each, officials said.

Local environmentalists have already expressed concern over setting up of a coal-fired power plant near Sundarbans.

 

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