Power plants want tax, VAT exemption on coal import

Shamim Jahangir

3 September, 2019 12:00 AM printer

The country’s coal-fired power plants demanded exemption of tax and VAT on import of coals to feed the 18 large power plants with a view to reducing the overall generation cost.

The coal-based power plants will require around 56 million tons of coal annually to produce 18392MW of electricity, official said.

The LNG as well as the fuel import for producing electricity will enjoy the same facilities, said the officials.

 “Our electricity generation cost may come down partially if the government allow tax, VAT exemption for import of coal for power generation,” Coal Power Generation Company Ltd of Bangladesh Managing Director Golam Kibria told the daily sun.

He said the company has placed a proposal before the National Board of Revenue (NBR) recently in this regard.  He said the company will waive around five percent duty subject to approval from the government.  

Bangladesh-China Power Company Limited (BCPCL) signed a deal with Indonesian firm June last to import four million tonnes of coal per year for 1320 MW coal-fired Payra Power Plant in Patuakhali.The BCPCL signed the agreement with PT Bayan Resources Tbk, Indonesia to feed the Payra 1320 MW Thermal Power Plant.

The plant will be operated by imported sub-bituminous coal. Its calorific value is about 4700-5500 Kcal. This type of coal is largely abundant in Indonesia and Australia. At the initial stage coal will be imported from Indonesia.

The country’s first public sector large coal-fired power plant in Pyara is expected to start producing electricity in December next.

 “We are willing to import 4 million tons of coal annually for 10 consecutive years to feed the coal fired power plants,” said Bangladesh-China Power Company Limited (BCPCL) Managing Director Engr. AM Khurshedul Alam while talking to the Daily Sun.

The government has set a target to generate 18,392MW electricity from coal-fired power plants. Of the electricity, some 5040MW will come from public power plants.