The Bangladesh-India Friendship Power Company Ltd (BIFPCL), a joint venture of the Bangladesh Power Development Board (BPDB) and NTPC Ltd of India, is exploring alternative coal procurement sources to sustain operations at the 1,320MW Rampal coal-fired power plant, following a partial suspension of coal supply by the Bashundhara Group over unpaid dues.
To maintain uninterrupted electricity generation, BIFPCL has already sourced coal through three consignments from other major power plants—the 1,320MW Payra plant, the newly installed 1,320MW Patuakhali plant, and SS Power Ltd’s 1,320MW facility in Banshkhali, Chattogram.
Background to the Crisis
BIFPCL signed a Power Purchase Agreement (PPA) in 2013 and an Implementation Agreement (IA) in 2022 with BPDB to build and operate the Rampal plant near the Sundarbans. The plant achieved Commercial Operation Date (COD) in March 2023.
On June 7, 2023, BIFPCL entered into an agreement with a consortium led by Bashundhara Multi Trade Ltd (Dhaka), along with Equentia Natural Resources Pte Ltd (Singapore) and ATRO International FZE (UAE), to supply 8 million metric tonnes of coal annually.
Initially, payments to the consortium were regular. However, with BPDB prioritizing payments to foreign power and energy suppliers, arrears began to accumulate, triggering the Bashundhara Group’s decision to partially suspend coal delivery.
As a result, BIFPCL was forced to shut down two units of the Rampal plant—on January 9 and February 5, 2025, respectively—during peak demand in the hot summer, due to coal shortages.
Emergency Coal Procurement
To resolve the crisis, BPDB facilitated tripartite agreements with Bangladesh-China Power Company Ltd (BCPCL) and SS Power Ltd, each supplying 20,500 metric tonnes of coal. These deliveries generated approximately 249.4 million units of electricity during the month of Ramadan.
BPDB now plans to sign further tripartite agreements with these companies to ensure continued coal supply. It has also proposed involving RPCL-Norinco as a potential supplier.
A BPDB official stated, “We are working to ensure electricity generation from coal-fired plants to produce low-cost electricity. The coal-based tariff is Tk 11–12 per unit compared to Tk 19 for oil-based generation.”
Response from Other Coal-fired Plants
An official from SS Power Ltd claimed they supplied coal worth Tk 87 crore two months ago, but have not received payment. Even after receiving Tk 300 crore, their total outstanding dues exceed Tk 3,200 crore. “Given the arrears, we are not in a position to supply more coal,” the official said.
Other coal-fired plants are reportedly facing liquidity challenges in opening Letters of Credit (LCs) to import coal on time.
According to BPDB sources, total arrears to coal-based plants have now exceeded Tk 12,000 crore.
Bashundhara Group’s Statement
“We suspended coal supply for a brief period due to non-payment but have resumed shipments,” said Masudur Rahman, Deputy General Manager (External Affairs and Press Media) of Bashundhara Group, in a statement to Just Energy News.
He said the group delivered eight shipments in April and May so far, with another four in the pipeline in the current month, and seven more ships scheduled for June.
“Our issues were resolved following the intervention of Muhammad Fauzul Kabir Khan, adviser to the Ministry of Power, Energy and Mineral Resources,” he added.
The official declined to comment on the arrears of supplied coal.
BPDB Chairman’s Remarks
“We are finalizing new tripartite agreements to ensure uninterrupted coal supply to the Rampal plant,” said Rezaul Karim, Chairman of BPDB. “There was a shortfall in Bashundhara’s supply during Ramadan, which we are addressing.”
He also noted that keeping most coal-fired plants operational will reduce government subsidies, as coal-based power costs Tk 11–12 per unit, while oil-based generation exceeds Tk 19 per unit.