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The Power Division has sought over Tk 23.19 billion as subsidy from the government against the state-run Bangladesh Power Development Board's (BPDB) tariff deficit to help ensure uninterrupted power supply across the country, official sources said.
The BPDB sustained the tariff deficit on account of selling electricity to the bulk consumers at lower rates than that production/purchasing costs, they mentioned.
In a letter, the Power Division under the Ministry of Power, Energy and Mineral Resources has recently requested the Finance Division to take necessary steps to urgently allocate the said amount of fund as subsidy in favor of the BPDB.
Usually, the BPDB procures electricity from the independent power producers (IPPs) and rental power plants.
Apart from that, it also imports electricity from India at higher prices, officials said.
The government owes a sum of Tk 33.43 billion to the BPDB in subsidy until August last on account of selling electricity at lower prices than its procurement or production costs.
Of the amount, a proposal for allocating Tk 10.25 billion worth of outstanding subsidy for eight power plants is now under consideration of the Cabinet Committee on Government Purchase (CCGP).
The government has set a target of allocating a total of Tk 350 billion as power subsidy for the current 2025-26 fiscal year.
With the financial support from the government, it is possible to maintain electricity supply through making monthly payments against the electricity bills of IPPs and rental power companies, according to the official sources.
Besides, advance payment has to be made to the state-owned Bangladesh Petroleum Corporation (BPC) for ensuring smooth supply of fuel-oil to the power producers, the Power Division said in the letter.
The letter further said it is also necessary to make sure supplies of the required fuel-oil and coals for the sake of uninterrupted power supply in the ongoing summer.
Keeping this in view, the power producers had already requested the BPDB on several occasions to make the timely payments of their outstanding electricity bills, an official of the power division said.
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