Despite having a very clear-cut directive from the Prime Minister, to give extensions to the costly rental and quick-rental power plants, on “case by case” basis, the Power Division is set to give blanket extensions to all such projects. Some officials of the Power Division have started lobbying on behalf of the owners of rental and quick-rental power plants, arguing that the power crisis would intensify in 2016-2017, if the Power Division does not extend the tenure of these for a long period.
It here be mentioned that a vested quarter in the power sector is engaging in pursuing the idea on converting the rental and quick rental power projects into IPPs, for their personal benefit.
According to officials, the PDB incurs a loss of about Tk. 5 crore, each month, because it has to distribute electricity at subsidised prices.
“PDB has sought Tk. 20 to 24 crore from the government, as monthly subsidy, to pay outstanding bills to the costly rental and quick-rental plants. The government is buying electricity at Tk. 14-17 per unit from the rental power plants that use fuel oil,” a PDB official said. The rental and quick-rental power projects now have a combined capacity to generate 1,561 megawatts of electricity.
According to a study by CPD, the subsidy on the rental power plants, in 2011-12, accounted for about 44 per cent of the total subsidy to the power and energy sector. However, the power sector needs Tk. 750 crore as subsidy, with most of the amount being used up on rental and quick-rental power projects.
Power Division sources said five of the short-term rental power projects have sought extensions to their project tenures, by 15 years, from the present five years, taking the advantage of slow progress in implementing the base load public and privately owned power stations.
“We are negotiating with the rental power plant entrepreneurs, to renew the contracts to buy electricity at a lower price for different terms, until 2020,” said a Power Division official.
“We asked them (the owners of rental and quick-rental power projects) to re-fix the tariff, and withdraw the case filed against the government (the owners filed cases against government, as they did not like to pay LD),” a senior Power Division official told The Independent.
It may be mentioned here that, last week, a meeting was held between the Power Division and several rental power plant entrepreneurs, that ended in a stalemate, as the companies were rigid on their demand.
“The government is likely to extend the tenures for the costly rental and quick-rental power plant projects for three to five years, until the 2019-2020 fiscal year, considering slow pace in implementation of a series of power plant projects, but that might also endanger the government’s electricity generation plan,” the official added.
There has been no outcome during the one-to-one negotiation with four rental power sponsors, including the 110 megawatt Khulna Power Company Ltd (KPCL), Energies Power Company, 50 megawatt Thakurgaon RZ power Ltd, and 55 megawatt Ashuganj Precision Energy Ltd. Except KPCL, deals for the rest had already expired. The KPCL deal also expired on October 11, 2013, officials confirmed
Courtesy of The Independent
