Bangladesh Power Development Board (PDB) has sought to raise its capital base by Tk5,000 crore as investment on the approved development projects in the current fiscal increased.
The current authorised capital of the PDB is Tk15,000 while the paid-up capital amounts to Tk14,283 crore as of June 2013.
According to the PDB proposal, the authorised capital should be Tk20,000 as the paid-up capital would exceed the authorised in size after 60% of total investment is added as equity. But as per The Companies Act, the authorised capital will have to be kept larger than the paid-up capital.
Sixty per cent of total investment is calculated as equity, which is added to the paid-up capital. PDB invested Tk1,891 crore on development projects in the current fiscal year so far and thus the amount of equity stands at Tk1,134.60 crore.
When the equity is added, the current paid-up capital will stand at Tk15,418.48 crore which is more than the authorised capital. PDB sent a proposal to the Finance Division to approve the plan of raising the paid-up and authorised capital in the FY2013-14.
A finance division official said the PDB proposal was under review.
PDB has sought to raise capital base immediately for smooth operation of the government fund.
The paid-up capital of PDB was raised to Tk9,296 crore in 2009-10 from Tk9,087 crore in 2008-09, Tk11,813 crore in 2011-12 from Tk9,646 crore in 2010-11 and 14,283 crore in 2012-13 from Tk13,596 crore in 2011-12.
