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 faced minimal consequences despite its involvement 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.
“We immediately informed the Power Division and sent back the ship, MV Orient Orchid, without unloading the coal,” said CPGCBL Managing Director Md. Nazmul Huque in an interview with Just Energy News on Sunday. When asked if sabotage was involved, Huque declined to comment.
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.
Official and Expert Reactions
Power and Energy Adviser Muhammed Fouzul Kabir Khan told Just Energy News that the shipment was returned immediately.
However, the ministry refrained from harsh action against the suppliers due to high electricity demand during the summer. “I have asked the Power Division to conduct a thorough investigation,” he added.
Energy experts, however, have raised serious concerns. Prof. Ijaz Hossain, former dean of BUET, urged the government to blacklist the suppliers and conduct a full investigation. “With the massive coal demand for multiple power plants, this incident must not be ignored,” he warned.
Prof. M. Shamsul Alam, energy adviser at the Consumer Association of Bangladesh (CAB), demanded the immediate cancellation of the coal supply deal and legal action against those responsible. “If the government fails to act, CAB will take the matter to court,” he stated.
Power Generation and Supplier Accountability
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.
Just Energy News attempted to contact Md. Rahmatullah, Chief Accounts Officer of Unique Cement Industries Ltd., but was unable to reach him.
The investigation into the coal scam continues as industry experts call for stricter accountability measures to prevent future irregularities.