Nine power plants, including the 1,320MW Bangladesh-India Rampal coal-fired plant and the 1,320MW RPCL-Norinco Patuakhali coal-fired plant, have been operating without approved tariffs or Power Purchase Agreements (PPAs), officials have confirmed.
These plants, with a combined generation capacity of 3,413.694MW, were implemented between 2012 and 2023 under the previous Awami League-led government.
Among them, 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.
Due to the absence of proper tariff approvals, the Ministry of Finance withheld Tk 5,056.89 crore in subsidies meant for these nine plants between October 2024 and June 2025.
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.
Irregularities Uncovered
The interim government, which assumed office in August 2024, identified the issue during an internal audit. Following this, the Power Division and the Bangladesh Power Development Board (BPDB) were asked to explain the situation.
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.
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.The power plants without PPA approval include 1,320MW Rampal Power Plant (Bangladesh-India JV), 1,320MW Patuakhali Power Plant (RPCL-Norinco JV), 210MW Mymensingh Power Plant, 52.194MW Kodda Power Plant, 25.50MW Rowzan Power Plant, 105MW Gazipur Power Plant, 163MW Mirsharai Power Plant, 150MW Kodda Power Plant, and 68MW Sirajganj Power Plant.
An RPCL official told Just Energy News, “We submitted tariff proposals for our four plants, but approval was delayed due to the government’s effort to reduce tariffs through negotiations.”
Ongoing Negotiations
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.
The BPDB claimed that tariff committee approval had been secured in most cases, but the Finance Division has yet to release the withheld subsidies.
Power Division officials said negotiations are ongoing with plant operators. Coal-fired plants are being offered a 10% return on investment (RoI), while oil-fired plants are being offered 6%.
“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.
Consumer Rights Groups Raise Concerns
Energy expert Professor Anu Muhammad criticised the continued operation of the Rampal plant without tariff approval.
Speaking to Just Energy News, he said, “This is a clear sign of irregularities. The government should cancel the project rather than retroactively approve its tariffs.”
A longstanding critic of the Rampal plant for its proximity to the Sundarbans, Anu Muhammad also alleged that the plant was established in violation of environmental regulations and that its Commercial Operation Date (COD) was approved hastily despite technical irregularities.
Meanwhile, Power and Energy Adviser Dr. Muhammad Fouzul Kabir Khan told Just Energy News that the government’s investigation into power projects operating without tariff approval is ongoing.