Anisul Islam Noor :
The country’s private power plant owners are unable to open Letter of Credit to import fuel oil for their power plants as many banks are not taking their LCs saying crisis for dollar.
Talking with The New Nation yesterday, a private power plant owner said, from the beginning of the current fiscal year the unrest is seen in the country’s dollar market.
He said, many private banks are facing acute dollar crisis. It has had an impact on import of fuel oil for the private power plants. Many banks are unable to open the LC to import fuel oil for the private power plants.
As a result, the power plants are going through state-owned Bangladesh Petroleum Corporation (BPC) for fuel oil. Instead of direct import, they are collecting fuel oil from the BPC.
Managing Director of Mutual Trust Bank Anis A Khan told The New Nation that the crisis of the market has been going on for many days. Since the market is unstable, the dollar prices are increasing.
As a result, many banks are unwilling to open large LCs.
Two years ago, the private power plant owners started importing fuel oil in their own initiative despite lack of policies regarding it. But from February this year, they could not open LC. As a result, they were dependent on the BPC for fuel oil since then.
According to sources, due to the dollar crisis, most of the private banks are not taking risk of opening large LCs for import. Many banks are struggling to pay the old LC liability.
In the country, there are 109 power plants in government and private sectors. Of them, the number of private power plants with quick rental and rentals is 66. The main fuel of these power plants is natural gas, diesel and furnace oil. Of them, 35 are diesel and furnace oil based.
About 15 private power generating companies, including Summit Power, Orion, Darin Power and Banglacat, were allowed to import furnace oil on different conditions.
However, most companies except two have started importing oil without having any deal with the BPC. As a result, BPC lost the royalties according to the rules. With the help of its own import, private companies save Tk 20-25 per liter.
But due to the dollar crisis, the power generation companies are returning to BPC due to their failure to open LC.
The country’s private power plant owners are unable to open Letter of Credit to import fuel oil for their power plants as many banks are not taking their LCs saying crisis for dollar.
Talking with The New Nation yesterday, a private power plant owner said, from the beginning of the current fiscal year the unrest is seen in the country’s dollar market.
He said, many private banks are facing acute dollar crisis. It has had an impact on import of fuel oil for the private power plants. Many banks are unable to open the LC to import fuel oil for the private power plants.
As a result, the power plants are going through state-owned Bangladesh Petroleum Corporation (BPC) for fuel oil. Instead of direct import, they are collecting fuel oil from the BPC.
Managing Director of Mutual Trust Bank Anis A Khan told The New Nation that the crisis of the market has been going on for many days. Since the market is unstable, the dollar prices are increasing.
As a result, many banks are unwilling to open large LCs.
Two years ago, the private power plant owners started importing fuel oil in their own initiative despite lack of policies regarding it. But from February this year, they could not open LC. As a result, they were dependent on the BPC for fuel oil since then.
According to sources, due to the dollar crisis, most of the private banks are not taking risk of opening large LCs for import. Many banks are struggling to pay the old LC liability.
In the country, there are 109 power plants in government and private sectors. Of them, the number of private power plants with quick rental and rentals is 66. The main fuel of these power plants is natural gas, diesel and furnace oil. Of them, 35 are diesel and furnace oil based.
About 15 private power generating companies, including Summit Power, Orion, Darin Power and Banglacat, were allowed to import furnace oil on different conditions.
However, most companies except two have started importing oil without having any deal with the BPC. As a result, BPC lost the royalties according to the rules. With the help of its own import, private companies save Tk 20-25 per liter.
But due to the dollar crisis, the power generation companies are returning to BPC due to their failure to open LC.
