Quantum Power Systems Ltd of furniture giant Otobi has recently uninstalled all machinery of its 105 megawatts Nowapara rental power plant without informing anyone.
The poorly built plant had not been generating any electricity for three to four years. Quantum Power owes the government more than $63 million dollars as penalties for not being able to supply power as per contract.
A Power Development Board (PDB) source said the contract with Quantum, renewed in 2014, would expire within a couple of months.
Quantum has not paid the penalties. Instead, it had filed a case with the High Court, challenging the PDB's claim.
“This case is still on. But we know that Quantum power is now in shambles. Their power plant was a junk. They would not be able to pay anything to the PDB, but leave us with the junk machinery at best. It's a hopeless case," said the PDB source.
Locals said a large number of plant machinery was taken to an unknown location on trucks.
Sheikh Nasir Uddin, officer-in-charge of Abhaynagar Police Station, said the power plant owners removed the machinery.
Sources said the plant went into production on August 25, 2011, but it could never meet the production target.
No-one could be reached to comment on behalf of the power plant.