Cabinet body approves import of 50,000 tonnes of onion from India

Summit Group's 3 power plants also get 5-year extension

FE REPORT | March 28, 2024 00:00:00

The cabinet committee on economic affairs (CCEA) on Wednesday approved a proposal, in principle, allowing the Trading Corporation of Bangladesh (TCB) to import 50,000 tonnes of onion from neighbouring India.

The National Cooperative Exports Limited of India will supply the onion amid price spiral of the key kitchen item in Bangladesh.

Finance Minister Abul Hassan Mahmood Ali presided over a meeting of the cabinet committee held at the cabinet division conference room at Bangladesh secretariat in the capital.

Briefing newsmen after the meeting, cabinet division secretary Md Mahmudul Hossain Khan said the government of India has nominated the National Cooperative Exports Limited to supply the onion to Bangladesh.

The meeting also approved a proposal, in principle, for procurement of liquefied natural gas (LNG) from the Gunvor Singapore Pte Ltd. under short-term process. The approval was given for a period of two years.

Also, the committee was apprised about the signing of the Terminal Use Agreement (TUA) and Implementation Agreement (IA) with Summit LNG Terminal II Co Ltd instead of Summit Oil and Shipping Co Ltd (SOSCL), for setting up a 600 MMCFD re-gasification FSRU at Moheshkhali in Cox's Bazar.

The minister also chaired a meeting of the cabinet committee on government purchase (CCGP) which approved further five-year extension of the tenure of existing agreements for three gas-fired power plants, each having 10 megawatt capacity, owned by the Summit Group.

The power plants are located in Ashulia, Madhabdi, and Chandina. Initially they had power purchase agreement for a period of 15 years until 2018, which later got extension until August 2023.

Secretary Mahmudul Hossain Khan said the tenure of the agreements was extended for the next five years on the 'No electricity, no payment' basis. The new tariff for the plants has been fixed at Tk 5.82 per kilowatt hour.

The government will buy electricity worth Tk 5.467 billion from the three plants in the next five years, according to the new agreements.

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