9 power plants of AL time operating sans tariffs or PPAs: Power Div 

 
The interim government identified that nine power plants, including the 1,320 MW Bangladesh-India Rampal coal-fired plant and 1,320 MW RPCL-Norinco Patuakhali coal-fired plant, have been operating without approved tariffs or Power Purchase Agreements (PPAs).

These plants, with a combined generation capacity of 3,413.694 MW, were implemented between 2012 and 2023 under the previous Awami League-led government, according to the Power Division. 

Apart from these two huge power plants, Bangladesh Power Development Board (BPDB) is also purchasing power without approved tariff from 210 MW Mymensingh Power Plant, 52.194 MW Kodda Power Plant, 25.50 MW Rawzan Power Plant, 105 MW Gazipur Power Plant, 163 MW Mirsharai Power Plant, 150 MW Kodda Power Plant, and 68 MW Sirajganj Power Plant.

According to BPDB, Rampal and Patuakhali are joint ventures. Four plants are owned by the state-run Rural Power Company Ltd, two by BR PowerGen Ltd, and one by North-West Power Generation Company Ltd.

"We found it during an internal audit. However, the Power Division and the Bangladesh Power Development Board (BPDB) were asked to explain the situation," a senior official of the Finance Division told the Daily Observer preferring anonymity.

Due to the absence of proper tariff approvals, the Ministry of Finance withheld Tk 5,056.89 crore in subsidies last month for these nine plants between October 2024 and June 2025. 

Power Division officials said negotiations are ongoing with plant operators. 

Coal-fired plants are being offered a 10 per cent return on investment (RoI), while oil-fired plants are being offered 6 per cent.

"We are reviewing the tariffs of these power plants. Once the review is complete, the Power Division will submit the PPAs for approval," a senior official said, requesting anonymity.

In a letter dated June 17, 2025, the Finance Division stated that while Tk 3,696 crore in subsidies had been released to the Power Division, the Tk 5,056.89 crore earmarked for the nine non-compliant plants remained withheld.

However, the Finance Division instructed the Power Division to secure tariff approvals from the Advisory Committee on Public Purchase by July 2025 to ensure future subsidy payments.

Former Power Division Secretary Habibur Rahman informed the Finance Division that tariff approvals were not sought as most plants were either fully public or joint ventures with government ownership, according to the official.

"We submitted tariff proposals for our four plants, but approval was delayed due to the government's effort to reduce tariffs through negotiations," an RPCL official told.

In response to a Finance Division query dated May 14, the BPDB replied on May 21, 2025, stating it had obtained PPA consents from the Power Division for eight of the nine plants. The Bangladesh-China Power Company has also reportedly secured Cabinet Committee consent.

Meanwhile, Power and Energy Adviser Dr Muhammad Fouzul Kabir Khan said that the government's investigation into power projects operating without tariff approval is ongoing.