BPDB to pay higher price for Barapukuria coal
Tuesday, 23 September 2008
FE Report
The government has enhanced the price of Barapukuria coal for Bangladesh Power Development Board (BPDB) by nearly 20 per cent at US$71.50 a tonne from the previous $60, official said.
From now on the BPDB will have to purchase coal from the state-owned Barapukuria Coal Mining Company Ltd (BCMCL) at $71.5 per tonne to generate electricity from the country's lone coal-fired power plant.
Power generation cost from the BPDB-owned Barapukuria 250 megawatt (MW) coal -fired power plant would go up due to the hike in coal price.
"The coal price has been increased in line with the recommendations of the Executive Committee for National Economic Council (ECNEC)," chief adviser's special assistant professor M Tamim told the FE Monday.
He said the ECNEC earlier scrutinised a coal-price hike proposal made by a committee comprising representatives from the BPDB, the BCMCL and the Petrobangla.
Despite the latest hike the BPDB would get the BCMCL coal at almost one-third of the international price of the same, a senior BCMCL official said.
"The international price of similar quality coal now ranges between $190-$195 per tonne," the BCMCL managing director Abdul Aziz Khan said.
The coal mining company would have to count loss as the production cost of the BCMCL coal stood at $84 per tonne as per the latest audit report for 2006-07, he said.
The BPDB consumes 80 per cent of the BCMCL high quality bituminous coal.
The BCMCL, that has around 130,000 tonnes of coal in stocks, now produces coal between 3,500 and 4,000 tonnes a day.
The new price would not affect the pricing for the private consumers and they would have to purchase the BCMCL coal at a price to be determined through open tenders, the BCMCL said.
The BCMCL sold coal to private sector clients at $105 per tonne until recently. The price may be increased to $115 per tonne, Mr Khan said. The brickfields and tea gardens are the main users of BCMCL's coal.
Sources said the state-run BPDB had been purchasing coal from the state-run BCMCL at the rate of $ 60 per tonne since initiating electricity generation from the Barapukuria power plant in 2006.
The BCMCL was long been pressing the government for a hike in the price of coal purchased by the BPDB.
A committee formed following the appeal recommended for fixing the price of coal at $71.5 per tonne in November last year.
The government has enhanced the price of Barapukuria coal for Bangladesh Power Development Board (BPDB) by nearly 20 per cent at US$71.50 a tonne from the previous $60, official said.
From now on the BPDB will have to purchase coal from the state-owned Barapukuria Coal Mining Company Ltd (BCMCL) at $71.5 per tonne to generate electricity from the country's lone coal-fired power plant.
Power generation cost from the BPDB-owned Barapukuria 250 megawatt (MW) coal -fired power plant would go up due to the hike in coal price.
"The coal price has been increased in line with the recommendations of the Executive Committee for National Economic Council (ECNEC)," chief adviser's special assistant professor M Tamim told the FE Monday.
He said the ECNEC earlier scrutinised a coal-price hike proposal made by a committee comprising representatives from the BPDB, the BCMCL and the Petrobangla.
Despite the latest hike the BPDB would get the BCMCL coal at almost one-third of the international price of the same, a senior BCMCL official said.
"The international price of similar quality coal now ranges between $190-$195 per tonne," the BCMCL managing director Abdul Aziz Khan said.
The coal mining company would have to count loss as the production cost of the BCMCL coal stood at $84 per tonne as per the latest audit report for 2006-07, he said.
The BPDB consumes 80 per cent of the BCMCL high quality bituminous coal.
The BCMCL, that has around 130,000 tonnes of coal in stocks, now produces coal between 3,500 and 4,000 tonnes a day.
The new price would not affect the pricing for the private consumers and they would have to purchase the BCMCL coal at a price to be determined through open tenders, the BCMCL said.
The BCMCL sold coal to private sector clients at $105 per tonne until recently. The price may be increased to $115 per tonne, Mr Khan said. The brickfields and tea gardens are the main users of BCMCL's coal.
Sources said the state-run BPDB had been purchasing coal from the state-run BCMCL at the rate of $ 60 per tonne since initiating electricity generation from the Barapukuria power plant in 2006.
The BCMCL was long been pressing the government for a hike in the price of coal purchased by the BPDB.
A committee formed following the appeal recommended for fixing the price of coal at $71.5 per tonne in November last year.