BB approves LC opening for S Alam-owned SS Power through Rupali Bank
Thirty percent of SS Power (Banshkhali coal-fired power plant) is owned by a Chinese company.
Bangladesh Bank has approved the opening of Letters of Credit (LCs) for SS Power One Limited, of which, majority share is owned by S Alam Group, through Rupali Bank with a 100% cash margin until 31 December 2027.
The central bank published a gazette notification today (16 August) in this regard.
A senior Bangladesh Bank official told The Business Standard that the central bank had sent a proposal to the finance ministry seeking approval to allow the LCs to be opened. Following the ministry's approval, Bangladesh Bank issued the gazette notification.
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SS Power can now open LCs to import coal, subject to certain conditions. Bangladesh Bank will not bear any liability arising from the exemption, and the company will not be eligible to seek financial assistance from the central bank.
Seventy percent of SS Power (Banshkhali coal-fired power plant) is owned by S Alam Group, while the remaining 30% is owned by a Chinese company.
"SS Power itself is not a loan defaulter. However, its owner is now classified as a defaulter, which has resulted in the group being treated as a defaulter as well," the Bangladesh Bank official said.
He said SS Power is a power-generation company, and therefore the finance ministry and Bangladesh Bank have taken the decision with a view to ensuring an uninterrupted power supply.
