The Power Division of the Ministry of Power, Energy, and Mineral Resources has formed a three-member committee to investigate the adulterated coal import scam at the 1200MW Matarbari Ultra-Super Critical Power Plant in Cox’s Bazar.
Mohammad Sanaul Huq, Joint Secretary (Development-1) of the Power Division, will lead the team as Convener. He will be joined by Mohammad Hossain Potowary, Senior Assistant Secretary (Development-5) of the Power Division, and Md Nazmul Huq, Deputy Director (Non-Government Projects) of BPDB, as members.
According to an office order issued on March 24, 2025, the committee has been tasked with investigating the 11th consignment of coal for the Matarbari power plant and submitting its recommendations within three working days.
“We have already formed a probe committee and will take necessary actions after receiving their report,” said Farzana Momtaz, Secretary of the Power Division, told to Just Energy News on Monday.
She also mentioned that the team is currently visiting Matarbari. A joint venture between Unique Cement Industries Limited (UCIL), a sister concern of Meghna Group, and Indian conglomerate Aditya Birla Global Trading (Singapore) Pte. Ltd (AGBT), has involved in a coal supply scam linked to the 1,200MW Matarbari Coal-Fired Thermal Power Plant.
The scandal was uncovered when the 11th shipment, containing 49,000 tonnes of coal, arrived at the Coal Power Generation Company Bangladesh Limited (CPGCBL) with “unusual stones, mud, and reddish materials,” according to an official. The coal, valued at Tk 60 crore, was supplied by UCIL and AGBT.
Serious Quality Issues Identified
In an official letter to the Power Division, Kazi Md. Miraj Hossain, Company Secretary of the Matarbari Power Plant, detailed the coal’s deficiencies, citing high water content and foreign materials that posed significant operational challenges.
“The coal’s water content increases consumption in the boiler, while larger foreign materials (over 50mm) disrupt the coal conveyor scraper, unloader, and fixed screen operation,” the letter stated, warning of potential damage to critical components such as the conveyor belt, reclaimer, crusher, and pulverizer.
The EPC contractor for the project warned that using substandard coal would void the warranty. CPGCBL’s proposal to manually remove foreign materials was deemed impractical due to the unloading system’s design.
Investigation and Potential Penalties
Representatives from UCIL and AGBT inspected the shipment on March 19, 2025, and acknowledged the quality control failure at the loading port during a March 20, 2025, meeting with CPGCBL. As a result, CPGCBL decided to reject the shipment and requested an urgent investigation into the coal supply process.
The company has also proposed imposing demurrage fees for any damage caused to unloading equipment and is reviewing coal quality control measures to prevent future incidents.
Bangladesh currently has the capacity to generate 5,503 MW of coal-fired electricity out of a total installed capacity of 26,906 MW. Among its coal-fired plants, only the 1,320 MW Payra plant has a direct coal procurement agreement with a mine.