Payra, Rampal won't supply power in summer unless subsidy payments released
The two plants together supply 2,400 megawatts of base-load power to the national grid. Subsidy payments have remained pending since August last year.
Concerns over meeting electricity demand during Ramadan, as well as the upcoming summer and irrigation season, have intensified after two major coal-fired power plants reported fund shortages for coal imports due to unpaid subsidy arrears of Tk4,726.37 crore.
The Power Division yesterday wrote to the finance ministry warning that unless outstanding subsidy payments are released, the two largest coal-fired plants – Rampal's Maitree Super Thermal Power Plant and the Payra Power Plant – will be unable to import fuel and generate electricity.
The two plants together supply 2,400 megawatts of base-load power to the national grid. Subsidy payments have remained pending since August last year.
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In the letter to Finance Secretary Dr Md Khairuzzaman Mozumder, the Power Division said that unless outstanding dues are released quickly, it will not be possible to ensure the additional electricity generation needed to meet demand during Ramadan, the irrigation season and the summer months.
"This could lead to load-shedding of 2,000–2,500 megawatts nationwide. As a result, irrigation activities will be disrupted, and public dissatisfaction may grow due to power cuts," the Power Division warned.
The developments come in the wake of the closure of the Strait of Hormuz due to the Iran war, and Qatar – Bangladesh's main LNG supplier – announcing the shutdown of its plants.
Pending subsidy funds
The Bangladesh Power Development Board (BPDB) has requested the finance secretary to release the pending subsidy funds in line with previous practice to ensure uninterrupted electricity supply during the ongoing Ramadan, irrigation season and the upcoming summer.
Subsidy payments to the 1,320MW Rampal Power Plant and the 1,320MW Payra Power Plant – both established during the Awami League government – have been suspended since August last year, as their tariff rates have not been approved by the Cabinet Committee on Government Purchase.
Although the government has held discussions with the two companies to revise the tariff rates, BPDB has been unable to place the proposal before the purchase committee due to pending clearance from foreign lenders.
The letter, signed by Deputy Secretary Mohammad Solaiman of the Power Division, further stated that timely payment to the plants is essential to ensure uninterrupted supply during Ramadan, the irrigation season and the forthcoming summer.
According to BPDB data, approximately Tk700-800 crore in subsidies is required each month for the Rampal and Payra plants. From August 2025 to January this year, subsidy arrears for the two coal-fired plants have accumulated to Tk4,726.37 crore. Due to the delay in fund disbursement, bills of several power plants cannot be paid on time.
"Since foreign loans are involved in the two plants, clearance from the respective lenders is required for tariff revision. As such clearance has not yet been obtained, the revised tariff rate could not be placed before the Cabinet Committee on Government Purchase for approval," the letter said.
"However, discussions with lenders are ongoing, and the tariff review will be completed as soon as possible so that the revised proposal can be sent to the purchase committee," the Power Division added.
