BPDB seeks Tk 9,750cr to clear power dues

The Bangladesh Power Development Board (BPDB) has urged the Finance Ministry to urgently release Tk 9,750 crore in outstanding subsidies to clear mounting dues to power producers and ensure uninterrupted electricity supply for irrigation during the upcoming Boro season.

The Power Division sent the request to the Finance Ministry on 15 September, prioritising the settlement of power producer bills ahead of the Boro and summer months.

According to BPDB data, subsidy-related dues to independent power producers stood at Tk 4,662.88 crore as of August. It owed Tk 1.19 crore to rental power plants and Tk 456.82 crore for electricity imported from India and Nepal, including power from Adani Power's Jharkhand plant.

The BPDB also had Tk 3,122.58 crore in subsidy-related dues to RPCL-NORINCO International Power Limited for the period from 30 September 2025 to May 2026, and another Tk 1,508.99 crore to the Coal Power Generation Company Bangladesh Limited for August 2024 to May 2026.

In its letter, the Board said releasing the subsidy would allow it to settle payments to private power producers, rental plants, imported-power suppliers and state-owned coal-fired power plants on time, helping maintain generation and supply.

It also stressed the need to maintain adequate stocks of liquid fuel and coal at power plants in the national interest, making timely settlement of power purchase bills essential.

The request comes ahead of the Boro season, when irrigation demand places additional pressure on electricity supply.

According to Bangladesh Bureau of Statistics data, the country produced more than 4.06 crore tonnes of rice from the Aus, Aman and Boro seasons combined in fiscal 2024-25. Boro accounted for more than 2.13 crore tonnes, or 52.47 per cent of total rice production.

Boro was cultivated on more than 1.20 crore acres that fiscal year. Timely irrigation and fertiliser application are crucial for maintaining yields, while irrigation is also needed for Rabi crops such as wheat, maize and mustard.

Officials said Boro cultivation could expand further in the coming season, potentially requiring irrigation for nearly four months across a large area.

According to the Bangladesh Agricultural Development Corporation's latest irrigation survey for FY24, the country had 17.2 lakh irrigation pumps, including 4.92 lakh electricity-powered pumps. These pumps irrigated 25.3 lakh hectares of farmland.

Another 12.3 lakh pumps were diesel-powered, while about 3,000 used solar energy. The Power Division, however, puts the number of electricity-powered irrigation pumps at about 4.98 lakh.

Agriculture accounts for 2.2 per cent to 2.5 per cent of total electricity consumption, according to the Power Division.

The government has said it plans to bring all irrigation pumps under solar power within five years. It has also waived duties on imports of equipment for expanding solar power in the current fiscal year, with plans to increase the number of solar-powered irrigation pumps before the next Boro season.