Govt to build more power plants based on alternative fuel: Finance Minister

Originally posted in The Daily Star on 29 December 2021

Illustration: Freepik

Finance Minister AHM Mustafa Kamal today said that the government will build more power plants based on alternative fuel, to make up for the cancellation of coal-based power plants.

After a meeting of the Cabinet Committee on Purchase, the minister said the government has cancelled eight coal-fired power projects from its plan in line with the international community as those are harmful for the environment.

Meanwhile, the term of four quick rental power plants has been extended from one to five years — at the purchase committee meeting.

Talking about the quick rental power plants, Kamal said that the cancellation of the coal-fired power plants was also a reason for the extension of the rental power plants. He, however, said the extension would not cost the government more. “The term has been extended on ‘no power, no payment’ basis,” he said.

In response to a question on raising electricity price, the minister said, “No such proposal has come to us at the moment.” If the price increases, it will be announced, he added.

Meanwhile, a proposal has been okayed for the approval of the economic affairs committee and 12 for the approval of the purchase committee.

The proposals include five from the power department, three from the shipping ministry, two from the railways ministry, one from the food ministry, one from the health education and family welfare department and one from the primary and mass education ministry.

The total amount in the 12 proposals approved by the purchase committee is Tk 72,540 crore.