The government has extended power purchase contracts of four inefficient plants including that run by the Hosaf group's Energy Prima.
The government intends to purchase 154.5MW of power from these four power plants for another two-three years although a number of efficient state-owned power projects are standing idle to gas crisis.
The cabinet committee on public purchase on Wednesday gave its consent to the energy division's proposal to extend the contract for four power plants.
The cabinet committee meeting was presided over by Finance Minister AMA Muhith.
Additional Secretary of Cabinet Division Mustafizur Rahman said of the three rental power plants of Energy Prima, two are located in Kumargaon and Shahzibaza, each with a capacity of producing 50MW, while another in Bogra with the capacity of 20 MW.
The contracts of these three plants were extended for three years, the official told the Dhaka Tribune.
He also said the Venture Energy Resources Ltd would get an extension for two years for its 34.5MW Bhola power project.