Govt may allow private power companies import petroleum to meet their needs
12/27/11unb

The government is likely to allow private power companies to import petroleum on their own to meet huge fuel requirement in their plants.

According to official sources, the Power Division has sent a proposal
to the Cabinet Economic Affairs Committee to allow the private power
companies, particularly the rental and quick rental power companies,
to run such business.

The Power Division has mentioned that they have moved the proposal
because of the inability of the Bangladesh Petroleum Corporation
(BPC) to import the huge petroleum fuel for the power companies.

At present, BPC is the only eligible authority to import and supply
petroleum fuel across the country.

The Power Division in the proposal said, “500 metric tonnes of
furnace oil is required in 24 hours for generating 100MW of
electricity from the rental power plants. But it’s not possible for
BPC to supply huge required fuel”.

It also mentioned that the government has so far approved
installation of 16 rental and quick rental power plants in private
sector having total capacity of 1,372 MW power.

The Power Division also proposed to pay 9 percent service charge to
the private power companies for their import of petroleum under their
own arrangement. This charge will be reviewed after one year.

Under the existing contracts, the government is to supply fuel to the
private power plants.

Many experts in business circle, however, believe this new provision,
if and when approved, may create a scope for brisk business for some
companies.

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