No progress yet in setting up operation, maintenance co for power plants

The government's move to set up an operation and maintenance (O&M) company for the country's existing power plants has seen no tangible progress since a directive was made by the Prime Minister one and a half years back.
The progress was not satisfactory despite one and a half years had passed since the initiative was taken, officials said.
"At present the process is going on for forming the company. We will send a proposal to the cabinet committee for approval," senior assistant secretary of Power Division Md Muklesur Rahman Akand told the FE on Sunday.
"It is not possible to say particularly when the proposal will be sent to the cabinet for approval. Power Division is trying its best in this connection," he added.
He said initially the state-owned power plants would be maintained under the proposed company.
Prime Minister Sheikh Hasina directed authorities concerned to form the company to ensure better operation and maintenance of the power plants during her visit to the Ministry of Power, Energy and Mineral Resources in February 2014.
Currently, there are 90 power plants in the country. In last five years, about 63 power plants were set up.
According to Power Division officials, the Ministry of Power, Energy and Mineral Resources will hold about 20 per cent stake in the proposed company.
Besides, Bangladesh Power Development Board, Ashuganj Power Station Company Ltd, Rural Power Company Limited, Northwest Power Generation Company Limited and Electricity Generation Company of Bangladesh will own 15 per cent stake each.
Five per cent shares will be held by the Coal Power Generation Company Bangladesh Limited.
Authorised capital and paid-up capital of the company will be Tk 2.0 billion (200 crore) and Tk 100 million (10 crore) respectively. Each share of the company will be worth Tk 10, according to them.
The government will provide the authorised capital for the company, and the paid-up capital will be borne by the seven companies in accordance with their shares.
The number of members in the company's board of directors will be seven to 11 initially.
A high official of the Power Division said many new power plants, based on coal and liquefied natural gas (LNG), would be established in the country. A large number of skilled manpower would be needed for the plants.
Currently, many of the country's power plants are not operating properly due to old age. Capacity of these outdated power stations is needed to be increased by ensuring appropriate operation, maintenance and repair.
Besides, professional and modern management is needed for planning and supervision to convert the power plants into combined cycle ones.
If the proposed entity can be formed, a significant amount of foreign currency will be saved and dependence on other countries will also decline.
Besides, skilled manpower of different agencies and companies, who already retired, could be hired for the power plants. It would be possible to engage the company's manpower for establishing and maintaining modern power plants through training, he also added.
A Memorandum of Association (MOA) and the Articles of Association (AOA) have been prepared to form the company under the Companies Act 1994.
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