The Ministry of Finance formed a high-powered committee on Thursday to resolve the ongoing dispute between the Power Division and the Ministry of Shipping over a maintenance levy on coal transportation at Payra Port.
The decision to form the committee was made during a high-level meeting chaired by Finance Adviser Dr. Salehuddin Ahmed, and attended by Power and Energy Adviser Fouzul Kabir Khan and Shipping Adviser Brig Gen (Retd) Dr. M. Sakhawat Hossain.
The meeting instructed the committee to submit a detailed analytical report on the port levy within two weeks.
The Finance Division’s Additional Secretary will head the committee, which will also include representatives from the Ministry of Shipping, the Power Division, stakeholders from the two coal-fired power plants, and the Payra Port Authority.
At the meeting, Power and Energy Adviser Fouzul Kabir Khan stated that the Ministry of Shipping had set the tariff without accommodating their consent. He cautioned that the existing tariff would increase the power subsidy.
In response, Shipping Adviser Brig Gen (Retd) Dr. M. Sakhawat Hossain explained that the levy was necessary to ensure the smooth operation of Payra Port. “Without maintenance and dredging, Payra Port becomes inoperative,” he said, adding that continuous maintenance was essential for the proper functioning of the two coal-fired power plants.
In response, Power and Energy Adviser Fouzul Kabir Khan requested that a more rational levy be set to ensure both the power plants and the port can operate smoothly.
Finance Adviser Dr. Salehuddin Ahmed instructed the committee to conduct a thorough analysis to review the tariff.
Once the report is submitted, the Finance Division will determine the final port levy, according to sources at the meeting.
The disagreement of the port levy arose after the Shipping Ministry introduced a port maintenance fee without consulting the Power Division through a gazette notification late last year.
Power Division officials estimate the levy, amounting to Tk 675 crore annually for transporting 7 million tonnes of coal through Payra Port, will increase electricity production costs and potentially raise power tariffs.
Officials from the Power Division noted that the levy contradicts commitments made to the International Monetary Fund (IMF) to reduce power production costs.
Meanwhile, the 1,320 MW Bangladesh-China Power Company Limited (BCPCL) and RPCL-Norinco International Power Limited (RNPL), the primary coal importers, expressed concerns about the financial burden.
Earlier, RPCL-Norinco Managing Director Salim Bhuiyan stated that the levy would cost Tk 360 crore annually, increasing electricity tariffs by Tk 0.50-Tk 0.60 per unit. He also highlighted inefficiencies in port operations, citing an additional $7–8 per tonne expense due to incomplete channel dredging.
Khurshedul Alam, former BCPCL managing director, disclosed that $68 million had been spent on channel dredging from 2019 to 2020. The dredging company proposed tiered charges based on channel depth, but the Ministry of Shipping set a fixed rate of $7.71 per tonne.
On January 13, 2025, Payra Port Authority conditionally approved the unloading of 56,614 metric tonnes of coal for RPCL-Norinco Intl Power Ltd after temporarily halting the process over the unpaid levy.
The company warned that delays in resolving the issue could disrupt power production as the plant prepares to synchronize operations next week.
In a letter to Payra Port Authority, RPCL-Norinco called for urgent action to release coal shipments and proposed an inter-ministerial discussion. However, the port authority maintained that the levy, formalised in May 2024, is a settled issue.
