Power Div seeks addl Tk 3,287.89cr from Finance Div

The Power Division has requested an additional Tk 3,287.89 crore from the Finance Division for the payments to IPPs and for imported electricity.

This projected loss is Tk 3,894.04 crore higher than the loss recorded in FY 2023-24, according to data from Bangladesh Power Development Board (BPDB).

Meanwhile, BPDB has projected a staggering loss of Tk 44,167.04 crore for the fiscal year 2024-25 for buying high-cost electricity from Independent Power Producers (IPPs) and power imports from India.

 "Payments to IPPs and for imported electricity are critical to ensuring uninterrupted power supply across the country," BPDB said in a letter on July 7, 2025.

The Finance Ministry has already disbursed Tk 21,301.77 crore to BPDB up to May 2025. However, but it is not sufficient as BPDB still owes Tk 22,865.27 crore to IPPs and for power imports accumulated between December 2024 and May 2025.

"In May 2025 alone, BPDB incurred a loss of Tk 3,668.10 crore. Of this amount, Tk 3,568.85 crore was due to electricity purchases from IPPs and small IPPs (SIPPs), Tk 4.47 crore from rental power plants, and Tk 94.78 crore from imported electricity-reflecting the mismatch between purchase and selling prices," BPDB's financial book said.

The Power Division, however, has formed a committee to prepare a three-year roadmap aimed at reducing losses and significantly lowering subsidies.  

The Ministry of Finance provided the funds of Tk 4,700 crore in subsidies to the Bangladesh Power Development Board (BPDB), which was approved as budgetary support to cover BPDB's losses for the fiscal years 2019-20, 2020-21, and 2021-22.

According to the Power Division, BPDB faces severe financial stress, including an annual repayment obligation of US$1.7 billion. It emphasised that BPDB has no surplus to remit, as its continued losses have left it financially constrained.