Body formed for feasibility study for offloading more state power cos

May 22, 2015

The government has taken a fresh move to offload shares of more state-run power companies in the capital market to mobilise funds for their expansion and implementation of development projects. An inter-ministerial meeting, with the state minister for power, energy and mineral resources Nasrul Hamid in chair, on Thursday decided to examine the feasibility of offloading shares of eight power sector companies.
The meeting decided to form a committee headed by an additional secretary of Power Division to prepare the feasibility report in one month, officials said.
Prime minister’s energy adviser Tawfiq-e-Elahi Chowdhury and the officials of Power Division, Finance Division, Banking Division, Securities and Exchange Commission, Dhaka Stock Exchange, National Board of Revenue and Investment Corporation of Bangladesh attended the meeting.
Some 10 out of 13 state-run organisations involved in power generation, transmission and distribution are operated by the Company Act 1994, a Power Division official said.
But he said only two companies — Power Grid Company of Bangladesh and Dhaka Electric Supply Company — offloaded shares in the capital market.
The other companies are Ashuganj Power Station Company Ltd, Electricity Generation Company of Bangladesh, North-West Power Generation Company, Rural Power Company Ltd, Coal Power Generation Company of Bangladesh Ltd, Bangladesh-India Friendship Power Company Ltd, Dhaka Power Distribution Company Ltd and West-Zone Power Distribution Company.
The proposed committee will scrutinise the financial and legal aspects of the eight potential power sector companies before
making its recommendations about offloading shares, the Power Division officials said.
The government in 2010 planed to mobilise funds from capital market to implement the power sector projects with a vision to bring 90 per cent areas of the country under power distribution networks.
DESCO has so far offloaded 25 per cent of its shares while another 10 per cent is under process of being offloaded, according to a report submitted to the Thursday’s meeting.
PGCB has so far offloaded 23.75 per cent of its shares while another 16.25 per cent is under process of being offloaded.
The paid up capital of DESCO is Tk 378 crore and that of PGCB is Tk 460 crore.
The state-run Power Development Board, on behalf of the government, owns the rest of the shares of DESCO and PGCB.

-Input from New Age

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