The Ministry of Finance has approved the release of Tk 20.67 billion (Tk 2,067 crore and 5 lakh) to clear outstanding bills for private power plants for the month of March.
According to a directive issued on April 21 by the Budget Wing-1 of the Finance Division, the funds will be released in favor of the Bangladesh Power Development Board (BPDB) to pay dues of Independent Power Producers (IPPs) and Rental Power Plants (RPPs). The amount will be provided from the electricity subsidy allocation under the revised budget for the fiscal year 2025–26.
The subsidy has been determined based on the actual deficit of 85 IPPs and 9 RPPs for March. Previously, the sector’s actual deficits up to February had already been settled.
To control subsidy management in the long term, the Finance Division has emphasized structural reforms. These include reducing capacity charges in power purchase agreements, maintaining comparative accounts of plant-wise generation and sales, and introducing a real-time data-based ERP system.
No funds from this allocation will be used for two power plants that lack Cabinet approval under government procurement rules, or for electricity imports from India. At the same time, instructions have been given to obtain quick approvals for these plants.
Regarding two newly added power plants—BR Powergen Shreepur (160 MW) and RPCL–Norinco International Power Limited—necessary actions will be taken after clarification.
For six approved power plants, the Finance Division has directed adjustments of actual subsidies in line with new tariffs alongside previous allocations.
The Finance Division has also stated that the funds must be used strictly for paying the specified IPP and RPP bills. They cannot be spent on any other purpose, and all government financial rules and regulations must be strictly followed.
To enhance transparency in the power sector, authorities have been instructed to submit detailed monthly deficit reports to the Finance Division within the first week of each month. In the future, the subsidy will be reconciled with actual liabilities determined through audits.