Paramount BTrac Energy Consortium is going to set up a 200-megawatt power plant in Sirajganj.
The cabinet committee on purchase approved the associated Power Division proposal yesterday.
The proposal says the government would purchase electricity at Tk 19.96 per kW/h from the diesel-based power plant.
The tenure of the plant will be five years. The sponsor company will purchase the land and construct the transmission line and sub-station at its own cost.
If the power plant is built on Power Development Board's (PDB) land, the company has to pay PDB Tk 1.92 lakh for every acre per year.
If commercial operations do not begin by the schedule, it would provide compensation at $200 per megawatt for each day.
In another development, the tenure of a 34.5MW rental power plant in Bhola set up by Venture Energy Resource Ltd has been extended by three more years. The cabinet committee has approved the extension of the tenure and new tariff. An agreement was signed with the company in 2008. Its tenure has been extended several times.
During the amended tenure, the PDB will buy electricity at Tk 3.21 per kW/h. The price was the same earlier.
Another cabinet committee on economic affairs has approved a proposal for opening Tangail Cotton Mills of Bangladesh Textile Mills Corporation under a public-private partnership initiative.