Category: Energy and Power

The United Nations has urged governments and international fi nancial institutions to signifi cantly increase investment in clean energy and sustainable infrastructure, warning that fi nancing gaps are slowing progress toward achieving the Sustainable Development Goals (SDGs) by 2030.

In his latest SDG Progress Report, UN SecretaryGeneral António Guterres noted that while global electricity access has reached 92 percent of the world’s population, nearly one in twelve people still lack reliable power.

The report also highlights that renewable energy capacity per capita grew by 14 percent between 2023 and 2024, reaching more than double its 2015 level.

Despite these gains, the report cautions that declining development assistance and weaker investment flows threaten further expansion of clean energy, particularly in developing countries.

Offi cial Development Assistance (ODA) fell by 6.1 percent in 2024, while foreign direct investment (FDI) to developing economies declined by 2 percent in 2025.

The Khalashpir coal mine stands as a notable example of prolonged delay despite its signifi cant strategic potential for Bangladesh’s energy security.

Although a formal development application was submitted in 2006 by the Hoasaf Group in partnership with a Chinese consortium, the project has remained stalled for nearly two decades, primarily due to administrative indecision.

Authorities have repeatedly cited the absence of a fi nalized coal policy as the key obstacle.

However, this position has been criticized by experts, who argue that development activities should not be delayed while a specifi c policy is being formulated.

The Khalashpir Coal Basin, located in Pirganj Upazila of Rangpur District, is a signifi cant Permian Gondwana coal deposit and was fi rst identifi ed in 1959 by Stanvac, USA, during the drilling of an exploratory oil well.

The well was drilled up to a depth of 2875m and found to be a dry hole.

Later exploration carried out by the Geological Survey of Bangladesh (GSB) between 1989 and 1990 confi rmed the presence of high-quality bituminous coal at depths ranging from 284 to 480 meters.

This discovery established Khalashpir as one of the country’s most promising coal deposits.

Exploration History Exploration of the Khalashpir Coalfi eld was signifi cantly advanced by the Geological Survey of Bangladesh (GSB) during 1989-1990, when four boreholes (GDH-45, 46, 47, and 48) were drilled.

Three of these wells (GDH-45, 46, and 47) intersected coal seams of potentially mineable thickness at depths ranging from approximately 257 to 483 meters, while GDH-48 encountered only limited, non-commercial coal, indicating the western boundary of the deposit.

The basin is a northwest-southeast elongated, fault-bounded structure covering about 25 square kilometers.

Subsequent investigations identifi ed eight distinct coal zones at depths between 257 and 483 meters.

Coal is classifi ed as medium-volatile, lowsulfur bituminous, with certain seams showing strong metallurgical potential due to favorable maceral composition.

In 2004, Hosaf International Ltd, in partnership with a Chinese consortium, undertook further exploration, with additional drilling carried out by GeotechIndia, bringing the total number of boreholes to 19.

These studies confi rmed the presence of high-grade coal with good calorifi c value and low sulfur content, along with associated minerals such as limestone and glass sand.

A mining lease application submitted in 2006 by the consortium proposed underground mining with an annual production target of around 3 million tonnes.

In 2009, International Mining Consultants Limited (IMCL) of the UK conducted a comprehensive technical and economic review at the request of Petrobangla.

The report emphasized the need for further exploration in accordance with international standards.

Coal Zones and Distribution The coal-bearing sequence of the Khalashpir Coalfi eld is located within the upper part of the Gondwana Group, with an average cumulative thickness of about 44 meters across eight identifi ed coal zones.

Zone I, occurring at depths of approximately 257 to 332 meters, is the most prominent and averages about 16.95 meters in thickness.

Notably, it includes a three-meter section with high vitrinite content (around 80 percent), indicating strong metallurgical potential.

Zone II also comprises multiple seams and features an upper section of about seven meters dominated by inertinite, making it suitable for blending in coke production.

The remaining zones (III-VIII) show variations in thickness and lateral continuity.

Among them, Zone III is the thinnest, with an average thickness of around 1.22 meters, while other zones occur as thinner and less continuous seams.

Overall, the distribution and quality of these coal zones underscore the technical and economic signifi cance of the deposit.

The Khalashpir Coalfi eld is characterized by a fault-bounded trough (graben) developed within the crystalline basement, aligned along a northwest- southeast axis.

The basin exhibits signifi cant structural deformation, including a major fault on the northnortheast side near borehole GDH-46, with an estimated displacement (throw) of about 150 meters.

Structural Geology The structural geology of the Khalashpir basin reveals a composite faultbounded trough, or graben, formed within the crystalline basement.

The basin is aligned along a northwest- southeast elongated axis and marked by signifi cant faulting, including a prominent fault on the north-northeast side near drill hole GDH-46, with a calculated throw of approximately 150 meters.

Gravity anomaly maps further indicate that the basin comprises several smaller sub-basins, evidenced by three prominent gravity highs located at Pirganj, Bhendabari, and Bhadhuria.

Proximate Analysis Comprehensive laboratory analyses conducted by the GSB and the United States Geological Survey provide detailed insight into the quality of coal from the Khalashpir Coalfi eld.

Proximate analysis indicates an average moisture content of about 1.3%, ash content of 21.8%, volatile matter of 22.9%, and fi xed carbon of approximately 54.1%, with higher concentrations observed in Zones I and II.

The sulfur content is relatively low, averaging around 0.77%.

Coal demonstrates a strong calorifi c value, averaging about 11,264 BTU per pound and reaching up to 13,880 BTU per pound in Zone I, highlighting its suitability for high-energy applications.

Overall, these characteristics classify Khalashpir coal as medium- to highvolatile bituminous coal with favorable chemical properties for both power generation and industrial use.

Coal Reserve / Resource Estimation Resource estimation for the Khalashpir Coalfi eld is based on a geological certainty framework that distinguishes between proved reserves confi rmed by detailed drilling and probable reserves inferred from broader geophysical data.

According to the GSB, the estimates are derived from eight identifi ed coal zones.

Proven reserves are concentrated within a core area of approximately 2.52 square kilometers, centered around boreholes GDH-45, GDH-46, and GDH-47, and are estimated at 142.9 million tonnes.

Zone I holds the largest share (approximately 56.4 million tonnes), followed by Zone II (around 33.0 million tonnes).

Beyond this core area, total resources are estimated at approximately 685 million tonnes across a wider zone, indicating substantial additional potential.

The coal reserve estimation by the GSB is furnished below: In 2009, an assessment by International Mining Consulting Limited (IMCL) further estimated that the in-situ resource of the three principal seams (I, II, and IV) alone is about 337 million tonnes, underscoring the substantial scale of the deposit.

Economic Viability Analytical studies confi rm that coal mining from the Khalashpir Coalfi eld is suitable for thermal applications, particularly for electricity generation.

In addition, certain zones exhibit high vitrinite and inertinite content, indicating potential metallurgical value for use in steel production.

Reviews, including the 2009 study by IMCL, emphasize the need for detailed techno-economic feasibility assessments to determine its commercial viability.

Exploiting Khalashpir could support a 300-500 MW coal-fi red power plant, enhance national energy security, create thousands of jobs, and stimulate socio-economic development in Pirganj and neighboring areas, making it a strategic asset for both energy and regional growth.

The prolonged delay in developing the Khalashpir coalfi eld is particularly signifi cant in the context of Bangladesh’s steadily growing energy demand.

The Power System Master Plan (PSMP) 2010, prepared by JICA, set an ambitious target of 40,000 MW of power generation capacity by 2030, with around 20,000 MW expected to come from coal.

However, this strategy was subsequently revised in the Gas Sector Master Plan 2017 and later in the Integrated Energy and Power Sector Master Plan 2023, reflecting a shift toward greater reliance on imported LNG, coal, liquid fuels, LPG, and crossborder electricity.

At present, domestic coal production remains limited to the Barapukuria mine, which produces less than 1 million tonnes annually.

This creates a substantial supply gap that is largely being met through imports.

Environmental, Social, and Safety Hazards The development of the Khalashpir Coal Mine entails signifi cant environmental, social, and occupational risks that require careful management: Surface Subsidence: Underground longwall mining is expected to cause the land above to sink.

Extraction of a 5-meter-thick seam could create depressions up to 3.5 meters, leading to waterlogging and loss of rice-cultivated land.

Comprehensive socio-economic mitigation will be necessary, including land acquisition, farmer compensation, and potentially the construction of resettlement villages.

Underground Temperatures: Geothermal conditions at mining depths reach approximately 40°C.

Heat generated by machinery will require robust ventilation and cooling systems to ensure safe working conditions.

Gas and Fire Risks: The mine is classifi ed as ‘gassy’ due to methane emissions, necessitating strict explosion prevention measures and potential methane drainage systems.

Additionally, the coal is prone to spontaneous combustion, posing a fi re risk in mine waste areas and surface stockpiles.

Water Management: Large volumes of water will be produced, requiring treatment to remove suspended solids and prevent acid mine drainage before safe discharge into rivers or use for irrigation.

Proper planning, strict safety protocols, and environmental safeguards will be essential to mitigate these hazards while enabling sustainable coal extraction.

Feasibility and Financial Modeling The Hosaf Group feasibility study, carried out in 2006, is considered incomplete, lacking a detailed implementation schedule, phased production plans, roadway development, and realistic capital and operating cost assessments.

Financial assumptions, such as a low coal sale price ($50/tonne) and high discount rates, were unrealistic.

Environmental, Social, and Safety Hazards The development of the Khalashpir project carries signifi cant environmental and occupational risks that require careful mitigation: Surface Subsidence Surface subsidence will have a severe and direct negative impact on local agriculture, which is the primary source of income for the region and currently produces surplus yields of rice.

Because the local topography is extremely flat, varying in elevation by less than 1.0 meter, the existing rice cultivation is highly sensitive to changes in water levels and regional drainage.

Even a modest surface subsidence of just 300 to 500 millimeters will cause severe waterlogging.

As underground longwall mining progresses, surface depressions are expected to reach up to 3.5 meters deep.

This drastic alteration of the landscape will effectively preclude rice production and make it impossible to cultivate other crops during the monsoon season.

Consequently, the destruction of this arable land will result in a direct loss of livelihood for the majority of the local population who depend wholly on farming.

To mitigate these effects and extend the period the land can be farmed, experts suggest temporarily restoring local drainage through localized pumping or building up land levels using prestripped waste material.

In the long term, reviewers recommend that the mining consortium purchase the affected land upfront and invest in upgrading surrounding, lower-yield agricultural areas to offset the lost crop production and help retain farming jobs in the region.

Underground Temperatures: Due to the region’s geothermal gradient, the original rock temperature at the target mining depths is around 40°C.

High-powered machinery will add to this heat, requiring extensive ventilation and cooling systems to maintain a safe working environment.

Gas and Fire Risks: The mine is classifi ed as ‘gassy’ due to methane emissions from the coal beds, requiring strict explosion prevention measures and potentially methane drainage systems.

Furthermore, the coal has a high risk of spontaneous combustion, meaning it can catch fi re if exposed to low-velocity air currents in the mine’s waste areas or surface stockpiles.

Water Management: The mine will discharge enormous amounts of water (potentially tens of thousands of cubic meters daily), which must be routed through physical and chemical treatment plants to remove suspended solids and prevent acid mine drainage before being discharged into local rivers or used for irrigation.

Recommendations and Observations by IMCL In 2009, IMCL reviewed the consortium’s feasibility study and recommended several key actions to ensure that the Khalashpir coal mine development is both commercially viable and safe: To conduct further exploratory drilling using a reputable contractor with modern equipment following international JORC (Joint Ore Reserves Committee) standards, including downhole geophysical logging such as Natural Gamma Ray, Gamma-Gamma, Density, Calliper, and Temperature.

To perform 3D numerical groundwater flow modeling to manage water-related risks.

To complete a comprehensive Environmental Impact Assessment (EIA) covering construction, operation, and closure phases.

To undertake a detailed market study to evaluate the commercial value of both cooking and thermal coal outputs.

These recommendations provide a framework for planning safe, economically viable, and environmentally responsible mining operations.

Sample Analysis All core samples must be logged and prepared per JORC principles, supervised by senior JORC-accredited geologists.

Analyses should be performed by at least two accredited international laboratories, following standard procedures.

Coal quality proximate analyses must be carried out on all exploratory cores to support computer-based resource modeling.

Geological Criteria for Mine Design Consider lessons from Barapukuria Coal Mine, Bangladesh’s fi rst underground coal mine.

Despite differences in sedimentology and structure, both sites share a nearsurface Dupi Tila aquifer, which poses signifi cant water inflow risks.

Care must be taken to prevent delays caused by uncontrolled water ingress.

Mine design should integrate deposit geology, faulting, coal seam characteristics, expected production, underground conditions, and surface layout/accessibility to ensure safe and effi cient operations.

Mine Design and Engineering For the Khalashpir Coalfi eld, underground mining is strongly preferred over opencast methods due to the depth and large volumes of the overlying Dupi Tila aquifer.

The recommended method is highly mechanized top coal caving longwall mining, with extraction sequences guided by progressive strata control modeling to limit subsidence beneath the aquifer to 10 mm per metre.

Vertical shaft construction should use the Artifi cial Ground Freezing (AGF) technique to stabilize the water-saturated Dupi Tila formation, transitioning to standard grouting in deeper, more stable rock units.

The underground layout should optimize pit placement for gravity-assisted drainage and level access, while computermodeled ventilation systems are essential to manage heat, methane emissions, and spontaneous combustion risks.

Underground Extraction Methods Coal extraction at the Khalashpir Coalfi eld is recommended using two primary underground methods, depending on seam geometry: Longwall Mining: For thicker seams, highly mechanized longwall mining is advised.

While the original feasibility study proposed hydraulic stowing to support the roof, this method has been criticized as costly and often ineffective.

Instead, top coal caving longwall faces are recommended for effi cient extraction of thick seams.

Pillar and Stall: For flatter seams, especially in the southern parts of the deposit, pillar and stall mining with remote-controlled continuous miners is preferred.

This method preserves roofsupporting coal pillars and provides operational flexibility, though it achieves a lower extraction ratio.

Government Decision On 2 April, 2026, the Government of Bangladesh informed Parliament that a fi nal decision on coal extraction from Khalashpir would be taken only after completion of a comprehensive feasibility study.

In response to a written question from Md.

Nurul Amin, the Power, Energy, and Mineral Resources Minister highlighted the coalfi eld’s historical exploration, signifi cant resource potential, and the need for careful, evidence-based evaluation before any development.

Coal Development Plan The present government has outlined a phased Coal Development Plan and Barapukuria Coal Mine Expansion Plan to strengthen national energy security.

Within the fi rst 180 days, a national seminar will be organized on coal production and utilization, aimed at framing policy directives and adopting integrated development plans for the fi ve discovered coalfi elds.

Building on these directives, during 2026-27, technoeconomic feasibility studies will be approved and initiated in line with the national plan.

During the same period, feasibility studies will be completed, mining development projects will be formulated, and project activities will commence.

Subsequently, during 202830, experimental coal extraction will begin, providing critical insights into operational viability and informing the scaling up of coal-based energy initiatives.

The phased approach is clear and aligns with best practices in coal project development.

However, for effective implementation, the plan should ensure early fi nalization of coal policy, include environmental and social safeguards, defi ne mining methods and infrastructure needs, and incorporate realistic timelines and fi nancing mechanisms.

Domestic Coal Production and Imports Domestic coal production in Bangladesh remains limited, with the Barapukuria Coal Mine producing less than 1 million tonnes annually, reflecting constrained capacity.

In contrast, coal imports by the private sector have grown steadily, exceeding 12.7 Mt in FY 2023-24.

This trend highlights the country’s increasing reliance on imported coal to meet rising energy demand, while domestic production contributes only a marginal share of total supply.

Commercial production at Barapukuria began in September 2005 with a designed annual capacity of 1 million tonnes.

At present, daily output ranges between 2,500 and 3,000 tonnes, with approximately 1.1 million tonnes in FY 2024-25, primarily supplying the 525 MW Barapukuria coal-fi red power plant.

With domestic natural gas production expected to decline, coal is emerging as a viable alternative to strengthen energy security.

Currently, coal accounts for about 35% of total electricity generation; however, domestic coal contributes less than 3%, underscoring the signifi cant gap between local production and national demand.

The coal import scenario from FY 2019-20 to FY 2024- 25 is as follows: Way Forward The Khalashpir Coalfi eld represents a signifi cant yet underutilized primary energy resource in Bangladesh.

While legitimate environmental and social concerns must be addressed with due diligence, the prolonged delay in decision-making highlights a broader challenge within the country’s energy sector.

Amid rising energy demand and increasing dependence on imported fuels, continued inaction on Khalashpir raises a critical question: how long can such a valuable resource remain untapped? An immediate review and update of the existing techno-economic feasibility study is therefore essential.

In line with recommendations by International Mining Consultants Limited, the government should take prompt and concrete steps to undertake a comprehensive and upto-date feasibility assessment without further delay.

Mortuza Ahmad Faruque: Energy Expert and Former Managing Director, BAPEX

The government has set a target to raise Bangladesh’s electricity generation capacity to 35,000 megawatts (MW) by 2030, alongside expanding the national transmission network to 25,000 circuit kilometers, Finance Minister Amir Khosru Mahmud Chowdhury announced while presenting the FY2026-27 national budget in Parliament on June 11.

the ?nance minister said the government is implementing a comprehensive strategy to strengthen the country’s energy security through intensi?ed oil and gas exploration, increased domestic energy production, expansion of petroleum re?ning capacity, and diversi?cation of fuel import sources. ‘Our government is committed to building a self-reliant, affordable, uninterrupted, environmentally sustainable and modern power system,’ he told the Jatiya Sangsad.

Bangladesh and Russia have reaf?rmed their commitment to strengthening cooperation in energy, trade, i n v e s t m e n t , and education during talks between Foreign Minister Dr. Khalilur Rahman and Russian Foreign Minister Sergey Lavrov in Moscow. The discussions reviewed the current state of bilateral relations and explored new opportunities for collaboration, particularly in the energy sector, which remains a cornerstone of the partnership.

the two sides also exchanged views on regional and international developments. Dr. Khalilur is visiting Russia on a three-day of?cial trip at the invitation of his Russian counterpart, marking his ?rst visit to Moscow since assuming of?ce earlier this year. Following their meeting, the two foreign ministers addressed a joint media brie?ng.

State Minister for Environment, Forest and Climate Change Sheikh Faridul Islam has called on member countries of the Global Environment Facility (GEF) to work collectively towards building a livable and sustainable planet for present and future generations. He made the call while addressing the secondday session of the GEF Conference held in Samarkand, Uzbekistan, recently.

in his speech, the State Minister emphasized that environmental pollution could be signi?cantly reduced through coordinated global efforts and by accurately identifying its sources. He highlighted the importance of international cooperation in implementing environmental protection measures and climateresilient development programmes to ensure sustainable growth.

A ?re broke out on an oil tanker anchored at the outer anchorage of Chattogram on 28 May.

the ?re reportedly started on the vessel named MT Meghna Trader.

after receiving the news, multiple units of the Bangladesh Coast Guard began operations to bring the blaze under control.

according to Coast Guard sources, the vessels Shyamol Bangla and BCGT Promotto joined the ?re?ghting efforts.

in addition, two ?re?ghting teams equipped with high-speed boats from BCG Base Chattogram and BCG Outpost Patenga were deployed to the scene.

the Coast Guard Eastern Zone Media Control Room con?rmed the incident. However, the cause of the ?re and the extent of the damage could not be immediately determined. Coast Guard personnel are continuing efforts to contain the blaze.

The power sector forms the backbone of any developing economy, and the transmission grid is the bridge connecting electricity generators to end consumers. However, in South Asia, state-owned power transmission companies face severe operational and institutional crises.

a primary example of this distress is Power Grid Bangladesh PLC (PGCB), established in 1997.

it is a state-owned enterprise that has incurred recurring operating losses over several ?scal years.

the company’s accumulated losses have surpassed Tk 1,500 crore, while its total debt burden has grown to nearly Tk 60,000 crore, as of May 2026.

this huge debt accrual is driven by the execution of several large infrastructure initiatives worth Tk 74,000 crore. PGCB has formally stated its inability to repay loans obtained from international ?nancial institutions. The crisis is deteriorating due to rising administrative expenses, massive interest on loans, and substantial foreign exchange conversion losses (over Tk 3,000 crore) resulting from the devaluation of the local currency.

the primary cause behind this structural failure is the severe gap between planned electricity transmission and actual grid utilization. PGCB expanded its network infrastructure to a total transmission capacity of 30,000MW. However, a major portion of this capacity remains unutilized due to lower generation volumes.

it forces the company to spend massive sums on maintaining idle infrastructure and a large workforce. This mismatch is further intensi?ed by generation de?ciencies within the stateowned power system. Publicly owned gas and coal-?red plants fail to maintain regular generation.

often, it is forced to bring in electrical power from far-?ung private power producers. Such long distances heavily increase transmission system losses (3.31% in May 2026) and create signi?cant voltage instability.

to survive, the company has submitted a proposal to the national regulatory body to increase its wheeling charges (ie, cost of using and maintaining the electric grid/transmission and distribution lines to the consumer) by over 50% across various voltage levels (for 230 kV: tariff Tk 0.3057 to Tk 0.4831/kWh, for 132 kV: tariff Tk 0.3086 to Tk 0.4877/kWh, for 33 kV: tariff Tk 0.3144 to TK 0.4969/kWh). However, the experts warn that addressing these losses by raising transmission tariffs will ultimately increase the total generation cost of electricity, causing in?ation and additional ?nancial stress for retail consumers. Case Study 1: Pakistan, National Grid Company (NGC) A similar pattern of ?nancial distress and structural vulnerability can be observed in Pakistan, which directlythreatens national development. Here, the NGC Limited of Pakistan (former National Transmission and Dispatch Company- NTDC) handles primary electricity transmission for managing the bulk high-voltages (220 kV, 500 kV, and above).

the core problem in Pakistan is circular debt, which paralyzes the entire energy supply chain. NGC struggles with poor revenue collection and fails to meet the targets for transmission and distribution losses.

the distribution entity defaults on payments to the central power purchasing agency. Therefore, the transmission utility faces a severe cash crunch, leaving it without the necessary capital to upgrade its outdated network.

on a standalone basis, NGC’s tariff structure is designed for full cost recovery, and it manages to pull a net pro?t after tax, reporting a revenue of PKR (Pakistan Rupee) 53,076 million for 9 months in FY (?scal year) 2025. However, the company faces an acute liquidity and structural loss crisis due to severe technical constraints, aging infrastructure, and South-North transmission bottlenecks.

these issues resulted in a massive national system loss of PKR 60.39 billion (US$ 216 million) during FY 2023-24 alone, as cheaper power had to be curtailed in favor of expensive local generation. The legacy of Pakistan’s energy circular debt heavily penalizes the grid, and up until recently.

the National Electric Power Regulatory Authority (NEPRA) had withheld PKR 41.44 billion in dues from NGC’s system charges over economic merit order violations.

this heavily impairs its working capital and delays vital grid infrastructure projects. Pakistan’s transmission infrastructure consists of tens of thousands of kilometers of lines. Yet, it suffers from massive system losses and frequent blackouts. Because the government historically sets consumer tariffs well below the actual cost of supply, the entire network relies on heavy state subsidies. Delays in releasing these subsidies trigger a chain reaction of payment defaults affecting fuel suppliers, private generators, and transmission agencies alike. Furthermore, the mismatch between generation planning and transmission capability is highly visible. Sub-optimal capacity utilization and a heavy reliance on expensive imported fuel oil have caused generation costs to skyrocket.

this operational inef?ciency costs Pakistan’s economy an estimated 2% of its gross domestic product (GDP) annually. Due to inadequate investment and bureaucratic delays in upgrading transmission corridors, the grid cannot reliably handle peak loads, forcing industries to set up expensive private backup generators. The state transmission entity, i.e., NGC, remains ?nancially crippled, dependent on periodic government bailouts.

it is unable to achieve ?nancial sustainability because its revenue model is broken by systemwide collection failures. Case Study 2: Sri Lanka, Ceylon Electricity Board (CEB) In Sri Lanka, the transmission system is managed by the CEB, a vertically integrated state utility that faces comparable systemic failures.

under the newly enacted Sri Lanka Electricity Act, it is being unbundled into separate stateowned entities, with its high-voltage transmission and system operations remaining under state control. Sri Lanka’s geographical isolation as an island means its electrical grid cannot import or export power from the wider South Asian subcontinent. Therefore, ensuring grid stability and infrastructure utilization is incredibly sensitive. Historically, CEB has suffered from massive ?nancial de?cits caused by bad political management and rigid pricing frameworks. Still, it remains under severe ?scal strain, despite aggressive electricity tariff revisions implemented throughout 2024-25 to align with actual generation costs. High generation costs driven by an expensive reliance on thermal power during dry quarters have offset tariff revenue.

according to the Central Bank of Sri Lanka’s Annual Economic Review, the CEB recorded a total ?nancial loss of LKR (Sri Lanka Rupee) 38.7 billion (US$ 128 million) for the year 2025. Consequently, its short-term liabilities rose to LKR 206.2 billion. The Sri Lankan grid relies on a combination of cheaper domestic hydropower and expensive thermal generation run by imported petroleum products.

the grid is forced to rely entirely on high-cost thermal power during droughts.

it causes the utility’s operational costs to shoot up dramatically. CEB has struggled with capacity shortfalls and overstretched medium-voltage transmission and distribution lines. The country succeeded in reducing itsoverall transmission and distribution losses from much higher levels down to around 14%. Still, the ?nancial model of the utility remains deeply broken. CEB has consistently failed to cover its supply costs through electricity tariffs due to state-enforced consumer subsidies.

this lack of ?nancial independence has limited the board’s capacity to execute long-term generation and transmission expansion plans.

the utility remains heavily dependent on foreign development assistance and state guarantees to fund its substation augmentations and network expansions. Like Bangladesh, Sri Lanka’s power utility faces a severe ?nancial squeeze due to high operational costs and a reliance on imported fuel. Because it cannot independently adjust tariffs, it has accumulated massive debts that place a major ?scal burden on the state. Case Study 3: India, Power Grid Corporation (POWERGRID) India presents a slightly different but highly relevant case study through its central transmission utility, named POWERGRID India Ltd.

as a Maharatna Public Sector Enterprise under the Ministry of Power, it transmits about 50% of the total electricity generated in India.

unlike its neighbors, the Indian central transmission utility underwent signi?cant structural reforms.

that allowed POWERGRID to achieve commercial success and operational ef?ciency, serving as a valuable lesson for struggling regional utilities. POWERGRID operates under an ef?cient, regulated return-oninvestment model and does not incur ?nancial losses. For the third quarter of the FY 2025-26, the company earns revenue of INR (India Rupee) 12,857.70 crore (US$ 1.54 billion) and a net pro?t of INR 4,184.96 crore (US$ 500 million), maintaining a net pro?t margin of over 32%. Years ago, the Indian power sector faced similar issues to those in Bangladesh, including massive transmission and distribution losses, widespread political interference, and severe ?nancial losses among staterun distribution companies.

the central government intervened by unbundling the vertically integrated boards andlisting the central transmission entity on the stock exchanges, though the state retained majority ownership.

this reform introduced corporate discipline, rigorous project management, and a transparent regulatory framework for tariff determination.

today, POWERGRID manages an extensive network spanning hundreds of kilometers and maintains low transmission system losses of 3-4%.

the company’s ?nancial strength allows easy raising of capital from international and domestic markets without relying on subsidies. However, the Indian transmission network still faces indirect vulnerabilities due to the ?nancial weakness of state-level distribution companies.

these state-level utilities often fail to pay transmission charges on time because of low billingWay Forward for PGCB The critical lessons those PGCB must learn from these regional peers are that structural unbundling, operational autonomy and disciplined planning are the paths to escape systemic ?nancial failure.

the cautionary tales of Pakistan and Sri Lanka demonstrate that relying on state subsidies, allowing a gap between generation and transmission planning and absorbing massive currency risks without hedging mechanisms will inevitably lead to insolvency and unutilized infrastructure capacity. Conversely, the success of India reveals that listing the corporation on public markets, establishing good governance, and implementing legal binding tripartite payment mechanism can insulate the transmission company from wider inef?ciency.

to move forwardef?ciency, populist subsidies, and pilferage.

to protect POWERGRID from these ?nancial risks, it established strict tripartite payment security mechanisms involving the central bank, state governments, and the central grid operator. Such a system allows the central utility to automatically deduct outstanding dues from a state’s federal revenue share (if it defaults).

this regulatory protection demonstrates structural independence, commercial autonomy, and strict payment security to escape losses and heavy debt that currently cripples PGCB. Summary Comparison Table of Stateowned Power Grid Companies Based on the information provided above, the following is a comprehensive summary comparison among Bangladesh, India, Sri Lanka, and Pakistan.

and transform into an ef?cient and pro?table enterprise, PGCB must align its future capital expenditure projects with actual, active generation capacities to eliminate idle infrastructure overheads. It must move towards an independent, data-driven tariff model (re?ecting operational and debt-servicing costs) without disruptive and ad-hoc wheeling charge spikes. PGCB should also actively hedge its foreign currency debts to protect against local currency devaluation. Furthermore, it should aggressively implement advanced smart-grid technologies to minimize transmission losses, which ultimately secures a stable revenue stream, relieving its massive ?scal burden

Trkiye and Australia have set out a joint vision for COP31, describing the upcoming UN climate summit as an ‘Implementation COP’ focused on turning global climate commitments into measurable action.

in a joint letter, COP31 President-designate Murat Kurum of Trkiye and COP31 President of Negotiations Chris Bowen of Australia pledged to strengthen international cooperation and accelerate delivery of the Paris Agreement goals, particularly by advancing Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs). The COP31 Presidency said the summit will prioritize climate action across mitigation, adaptation and ?nance, with additional focus on just transition, agriculture, transparency, clean energy transition and resilient infrastructure. Both leaders stressed the need to translate existing climate pledges into concrete, trackable progress while strengthening global coordination on climate ?nance and investment ?ows.

Developed countries have exceeded the UN climate ?nance target of $100 billion per year for the third year in a row, according to the latest data released by the OECD.

the report shows that climate ?nance provided and mobilized for developing countries reached $132.8 billion in 2023 and $136.7 billion in 2024, following $115.9 billion in 2022. Despite the overall increase, the OECD found that most funding continued to ?ow to middle-income countries, while support for low-income nations remained below its 2022 peak of $11.1 billion. Mitigation projects accounted for nearly two-thirds of total climate ?nance, while adaptation ?nance rose more slowly, making up about onequarter of ?ows in 2023 and 2024. Private ?nance also increased signi?cantly, reaching $30.5 billion in 2024-its largest annual rise in nearly a decade-driven mainly by multilateral development banks and private investment instruments.

The Cabinet Committee on Government Purchase (CCGP) has approved four proposals to import re?ned petroleum products worth approximately Tk 17,033.42 crore to meet the country’s fuel demand during the June-August 2026 period.

the approvals were granted at a meeting chaired by Finance Minister Amir Khosru Mahmud Chowdhury, following proposals submitted by the Energy and Mineral Resources Division under international competitive tendering.

the largest contract, valued at Tk 7,672.66 crore, was awarded to Unipec Singapore Pte Ltd for the supply of low-sulphur gas oil and Jet A-1 aviation fuel.

another package for the import of gas oil and Jet A-1 fuel, worth Tk 6,711.75 crore, was awarded to Vitol Asia Pte Ltd, which emerged as the lowest responsive bidder.

the committee also approved the import of Furnace Oil 180 CST at a cost of Tk 1,900.05 crore, with Tra?gura Pte Ltd selected as the supplier.

in addition, Vitol Asia Pte Ltd secured a contract worth Tk 748.96 crore to supply Gasoline 95 Unleaded.