Cabinet okays import proposals of oil, wheat

The cabinet committee on purchase yesterday approved import of 9.4 lakh tonnes of petroleum products at a cost of Tk 6,607 crore from three countries on state-to-state arrangements.
The committee in a meeting chaired by Finance Minister AMA Muhith yesterday also okayed setting up of three power plants and import of wheat.
Of the total 9.4 lakh tonnes of petroleum to be imported this time, 1.5 lakh tonnes will be bought from the Philippines, 6.5 lakh tonnes from Malaysia and 1.4 lakh tonnes from Singapore.
Of the amount, 7.67 lakh tonnes are diesel and furnace oil.
Energy ministry officials said the total demand for petroleum products has been estimated at 31.96 lakh tonnes -- of which about 27.15 lakh tonnes are diesel and furnace oil -- in the first six months of the current fiscal year.
Price hike of petroleum products on the international market, rising shipping charges and instability in the oil producing countries are pushing up the government expenditure on "premium".
An energy ministry official said the government will have to pay an additional Tk 7 crore as premium to import 9.4 lakh tonnes of fuel.
The committee also gave a go-ahead to two proposals for setting up two 300-MW coal-fired power plants in Chittagong and Khulna.
Besides, another quick rental power plant with a 52-MW generation capacity will be set up in Comilla. The power division has recommended awarding the job to Sri Lanka-based Lakdhanavi Limited as the lowest bidder.
The committee also approved import of 50,000 tonnes of wheat through private importer.