The government has released Tk6,000 crore to boost electricity generation from oil-fired power plants and clear outstanding dues to private power producers, State Minister for Power, Energy and Mineral Resources Anindya Islam Amit said.
The funds will be released in two instalments and mainly used to settle payments to private power producers, enabling them to purchase fuel and operate their plants more efficiently.
The government plans to increase oil-fired power generation by at least 5,000MW to reduce load-shedding and ease pressure on gas-fired plants. Officials estimate that returning oil-fired plants to full operation could add around 2,500MW to the national grid.
The initiative is also aimed at freeing up gas for industrial consumers by shifting more power generation to fuel oil. Oil-fired generation currently costs around Tk120 crore a day, and fuel oil purchases will be increased to support higher output.
