DESCO plans a 100mw power plant to cut load shedding in city
Thursday, 23 October 2008
Dhaka Electric Supply Company (DESCO) will move to set up a 100mw power plant to offset load shedding in its command areas in the city, reports UNB.
According to a plan, the DESCO will build up the power plant in joint venture with a private company under the proposed public private partnership (PPP) policy.
In view of the cash crunch in the power sector, the power ministry recently finalised a draft PPP policy for power sector to create scope for private-public partnership investment to build up power plants to overcome generation crisis.
The draft policy is under process for the law ministry's vetting. After the vetting, the draft policy will be placed to the cabinet committee for final approval of the government.
Under the PPP, any public sector enterprise can go for investment in the power sector with any private firm.
After looking into the new policy, DESCO Managing Director Saleh Ahmed said his company has become encouraged to get into power generation business.
He mentioned that about Tk 7.0 billion (700 crore) of his company, which remained unutilised, would be invested to set up the proposed power plant.
"The DESCO board has also discussed the matter and asked the management to go ahead with the idea," the DESCO top brass said.
"Soon after the PPP policy is approved, DESCO will take the physical move in this regard," he added.
The DESCO has to purchase electricity worth Tk 550 million a month in summer and Tk 430 million in winter from the Power Development Board (PDB).
According to a plan, the DESCO will build up the power plant in joint venture with a private company under the proposed public private partnership (PPP) policy.
In view of the cash crunch in the power sector, the power ministry recently finalised a draft PPP policy for power sector to create scope for private-public partnership investment to build up power plants to overcome generation crisis.
The draft policy is under process for the law ministry's vetting. After the vetting, the draft policy will be placed to the cabinet committee for final approval of the government.
Under the PPP, any public sector enterprise can go for investment in the power sector with any private firm.
After looking into the new policy, DESCO Managing Director Saleh Ahmed said his company has become encouraged to get into power generation business.
He mentioned that about Tk 7.0 billion (700 crore) of his company, which remained unutilised, would be invested to set up the proposed power plant.
"The DESCO board has also discussed the matter and asked the management to go ahead with the idea," the DESCO top brass said.
"Soon after the PPP policy is approved, DESCO will take the physical move in this regard," he added.
The DESCO has to purchase electricity worth Tk 550 million a month in summer and Tk 430 million in winter from the Power Development Board (PDB).