With Ramadan, the approaching summer season, and the irrigation period looming, Bangladesh faces growing uncertainty over electricity supply. The country’s two largest coal-fired power plants — the Rupaal Maitree Super Thermal Power Plant and the Payra Power Plant — are reportedly in financial distress, as they have not received a cumulative subsidy of Tk 4,726.37 crore. The unpaid subsidies have created a cash crunch, jeopardising the import of coal and the continued generation of electricity.
In a letter sent yesterday to the Finance Secretary, Dr. Md. Khairuzzaman Mozumdar, the Power Division warned that if the overdue payments are not released promptly, the two plants may be unable to operate at full capacity. Together, these plants supply around 2,400 MW of base-load electricity to the national grid. The subsidy payments for these plants have been pending since August 2025, exacerbating the situation.
The letter highlighted that without timely payment, the country could face nationwide load-shedding of 2,000–2,500 MW, disrupting irrigation activities and causing public discontent. The ongoing geopolitical tensions, including the closure of the Strait of Hormuz due to conflict in Iran and Qatar halting LNG supplies, have further strained Bangladesh’s energy supply chain.
Rupaal and Payra Power Plant Financial Overview
| Power Plant | Capacity (MW) | Monthly Subsidy Requirement (Tk crore) | Total Pending Subsidy (Tk crore) | Grid Supply (MW) |
|---|---|---|---|---|
| Rupaal | 1,320 | 700–800 | 2,363 | 1,200 |
| Payra | 1,320 | 700–800 | 2,363 | 1,200 |
| Total | 2,640 | 1,400–1,600 | 4,726 | 2,400 |
The Bangladesh Power Development Board (BPDB) has urged the Finance Secretary to expedite the release of overdue subsidies to ensure uninterrupted power during the critical period of Ramadan, summer, and irrigation season. The delay is largely due to the lack of approval for revised tariff rates by the government’s Purchase Committee, complicated further by pending clearance from foreign creditors.
BPDB estimates that the Rupaal and Payra plants require Tk 700–800 crore per month in subsidies. The pending amount from August 2025 to January 2026 totals Tk 4,726.37 crore. The delay in subsidy payments has also affected other power plants’ ability to settle bills, creating wider operational risks.
The Power Division emphasised that foreign debt obligations require the consent of lenders before tariff revisions can be approved. While discussions with lenders are ongoing, timely resolution is critical. Officials have stated that once clearance is received, the revised tariff proposal will be submitted to the Purchase Committee immediately.
Failure to release subsidies promptly could trigger significant electricity shortages, threatening both domestic consumption and agricultural irrigation, potentially leading to widespread public dissatisfaction during the peak summer months.