Dhaka, August 31, 2026: The Finance Division has released Tk6,000 crore to help increase electricity generation from oil-fired power plants and clear outstanding payments to private power producers.
The funds will be provided in two instalments and will primarily be used to settle the government’s outstanding dues to private power generation companies, enabling them to purchase fuel and operate their plants more effectively.
State Minister for Power, Energy and Mineral Resources Anindya Islam Amit confirmed the development to Media on Sunday.
The government plans to increase electricity generation from fuel oil-based power plants as part of efforts to reduce load-shedding and improve gas supplies to industries.
According to the state minister, Bangladesh plans to increase oil-fired power generation by at least 5,000 megawatts. The initiative is aimed at bringing fuel oil-based power plants back to full capacity and reducing pressure on gas-fired power generation.
At present, fuel oil-based electricity generation costs an average of around Tk120 crore per day, and spending on fuel oil will be increased to support higher generation.
If the oil-fired plants return to full production, around 2,500 MW of additional electricity could be added to the national grid, according to officials.
The government is prioritizing fuel oil-based generation so that gas currently being used by gas-fired power plants can be redirected to industrial consumers.
The release of funds comes as the government has started clearing outstanding bills in the power sector. The payments are expected to improve the financial capacity of private power producers, allowing them to purchase fuel and maintain electricity generation.
The government hopes that higher oil-fired generation, combined with the settlement of outstanding dues, will help bring load-shedding down to a more manageable level while improving gas availability for industries.
