Red tape barring setting up of pvt power plants
January 11, 2010 00:00:00
Jasim Uddin Haroon
Around a dozen power projects placed by private entrepreneurs to set up joint ventures with overseas principals have been facing severe bureaucratic tangles although the government wants power generation by either private or public ventures.
Many entrepreneurs, in the meantime, have left out their plans following the long bureaucratic procedures in the country.
BSRM Steels Limited, country's largest steel player, which proposed to set up a 400-megawatt (mw) power plant and Ratanpur Steel Re-rolling Mills (RSRM) which proposed to set up a 300-mw one are among others which had failed to win the approval of the government to generate power over the past one year.
Mustafa Kamal, member (generation) of the Bangladepower plants, but each time government officials failed to extend their cooperation to execute our plans."
He said his company wants decrease in prices of furnace oil to produce power as the country has been facing gas crisis for long.
"We wanted furnace oil consumption cost to be equivalent to gas prices to make our plants competitive," Aameir added.
Another entrepreneur who has been roaming at the secretariat over the past one year to set up a 300-mw coal-based power plant said: "I am really frustrated by the bureaucratic procedures."
He had visited the power division, the power grid company and the BPDB over the past one year and disdainfully said: "This is really a bitter experience."
He also said: "Sometimes it seems to me that the government doesn't want power generation in the country."
However, BPDB officials said they had advised the private entrepreneurs to participate in the government bids. sh Power Development Board (BPDB), said: "Many entrepreneurs want to build power plants. They are visiting us regularly. But we cannot allow them under the country's existing power policy."
The country has been facing severe power crisis for long and the government wants both private and public partnership to set up power plants to ease the power crisis and help grow the business activities.
Aameir Alihussain, a director of the BSRM Group, told the FE: "We proposed to the government several times to set up