The government has waived the registration fees of around Tk 2.18 crore to Reliance Bangladesh LNG and Power Limited for the construction of 718 MW gas-based combined cycle power plant at Meghnaghat in Narayanganj.
To this effect, the Ministry of Commerce issued a gazette notification on April 5.
Reliance Meghnaghat Power Plant is a joint venture between Indian business conglomerate Reliance Group and Japanese company JERA Co. Inc. The 718-MW LNG-based plant is scheduled to go into power generation this year.
Reliance Group, owned by Indian billionaire Mukesh Ambani, entered into a construction and power purchase agreement with BPDB in September 2019 for the construction of LNG-based power plant in Narayanganj’s Meghnaghat. In the same year, Japanese company JERA Co. Inc. bought a 49 per cent ownership of this power plant.
The power plant was supposed to go into production in September 2022 as per the schedule. But it was not possible to start the production due to various reasons, including the increase in the price of LNG in the world market.
According to the gazette notification signed by senior secretary of the Ministry of Commerce Tapan Kanti Ghosh, the government waived fees of Tk21,778,900 for the registration of financing documents--deed of mortgage and deed of hypothecation--for the construction of 718 mw gas-based combined cycle power plant at Meghnaghat in Narayanganj by Reliance Bangladesh LNG & Power Limited in the private sector under the authority given in sub-section (2A) of section 226 of the Companies Act 1994.
Sub-section (2A) of section 226 of the Companies Act, 1994 states that by notification in the official gazette, only reduction or increase in the rate of fee payable in Schedule-II and, if necessary, fixing new fees.
Reliance Bangladesh LNG & Power Limited (the “Company”) is a 100 per cent foreign-owned company incorporated in Bangladesh for setting up a 718 MW (net) gas-fired combined cycle power plant at Meghnaghat in Narayanganj, about 40 km southeast of Dhaka.
The company is co-owned by JERA Co. Inc. (the largest power generation company in Japan, producing one third of Japan's electricity) and Reliance Power Limited (one of the largest private power generation companies in India).
The electricity generated will be sold under a long-term power purchase agreement with the Bangladesh Power Development Board (BPDB) for a period of 22 years from the start of commercial operation. The plant will be set up on 35 acres of land within Meghnaghat Complex of BPDB.
The project has recently secured approval for full debt financing of US$ 642 million from a consortium of development financial institutions and international banks, including Asian Development Bank, Japan Bank for International Cooperation and Nippon Export and Investment Insurance, Mizuho Bank Ltd., Société Générale, MUFG Bank and Sumitomo Mitsui Banking Corporation.
The company signed EPC contract with Samsung C&T Corporation (Korea). Having secured requisite licences and approval, the company is currently focusing on full-scale construction and working steadily towards achieving commercial operation.
The power generated by the project will be supplied to the national grid through the 400kV transmission network operated by Power Grid Company of Bangladesh (PGCB), the state-owned power transmission company.
The company has also signed a Gas Supply Agreement with Titas Transmission & Distribution Company Limited (Titas), a subsidiary of PetroBangla, for supply of gas throughout the term of the Project.
The company’s investment in Bangladesh under the Private Sector Power Generation Policy will complement the nation’s vision to provide electricity to all as per Govt.'s Power Sector Master Plan 2010.
