The government has allowed Bangladesh's public sector company RPCL to set up a larger 1,320-megawatt (MW) coal-fired power plant to boost electricity generation capacity, officials said.
Power Division officials said the Rural Power Company Limited (RPCL), the country's first Independent Power Producer (IPP), would set up the ultra-supper critical technology power plant in southern Patuakhali district.
The company will develop 915 acres of land at Kalapara upazila of Patuakhali to set up the power station.
The RPCL recently sought approval of the land acquisition and development project from the government for setting up the power plant.
"We have recently sent a land development project proposal costing Tk 8.70 billion to the Planning Commission for approval. Soon after getting endorsement, we will start site development work for the power plant," said a senior Power Division official.
Another Power Division official said they had already allowed several private sector local and foreign companies for constructing coal-fired power plants.
Since the RPCL has a proven capacity to generate power, the Power Division has reposed its confidence on the public limited company, he told the FE.
Currently, the RPCL is operating 210MW capacity Mymensingh power plant, 52MW Gazipur dual-fuel power plant and 25MW Raozan dual-fuel power plant.
The Power Division official said the RPCL would acquire 915 acres of land at Kalapara in Patuakhali for setting up the power plant.
"They have plans to develop the land for the power station by June 2018," he said.
Meanwhile, the government has already allowed different coal-fired power generation companies including a Bangladesh-India joint venture company to set up 1,320MW plant at Rampal, a Singaporean company to build 1,320MW at Maheshkhali, the Bangladesh Power Development Board to set up 1,200MW at Matarbari, and a Bangladesh-China joint venture company to set up 1,320MW plant at Patuakhali.
As per the master plan, the government has target to generate over 40,000MW electricity by 2030. Of this, half of the generation will come from domestic and imported coal-fired power plants.