BPDB seeks Tk 80b urgent subsidy payment from government

The Bangladesh Power Development Board (BPDB) has sought a Tk 80 billion urgent fund from the government to maintain uninterrupted power supply across the country.
The government owes BPDB around Tk 265 billion in subsidy payments. It will pay the subsidy to fill the gap created by BPDB's sale of electricity to bulk consumers at lower-than-production rates.
Of the total amount, BPDB recently sought Tk 80 billion and requested the government to take steps in this regard by January 20.

The agency fears electricity supply disruptions in the upcoming Ramadan as well as the irrigation and summer season if sufficient fuel cannot be supplied to power plants.
Adequate fuel must be supplied to the coal- and liquid fuel-based plants to ensure their uninterrupted operations, which would help meet the upcoming higher demand for electricity, BPDB said.
Besides, the agency is supposed to pay instalments of the ECA loan, which was used to build two plants, by this month. Payment failures will turn the loan into "concerned credit," which it fears will tarnish the country's image.
The board expects to use the urgent fund to also clear the ECA loan instalments and imported electricity dues.
A senior BPDB official said the state-run entity has been selling subsidised electricity to bulk consumers for a long time to meet the country's increasing demand and ensure uninterrupted supply.
"That is why it has a huge deficit. Against the deficit, the government provides subsidies," he said.
The government's outstanding subsidy payment to BPDB was Tk 280 billion in September 2024. The amount fell to Tk 265 billion when the government paid Tk 15 billion.
The government provides BPDB with Tk 15 billon per month to clear gas bills and dues in order to maintain the supply of required gas to the gas-based plants. But due to high arrears, sufficient gas is not being supplied to the plants, a source said.
The government allocated Tk 360 billion for power sector subsidies in the FY25 national budget to clear capacity charges and other bills owed to private electricity producers, officials said.
BPDB usually sells electricity to consumers at lower-than-production rates and subsidies from the government fill the gap.
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