Amid raging controversy and ongoing protests by environmentalists, the construction work of two 660 megawatt units of a coal-based power plant in Rampal near the Sundarbans begins today. During a closed-door meeting between the Bangladesh–India Friendship Power Company Limited (BIFPCL) and the Bharat Heavy Electricals (BHEL), the notice to proceed (NTP) agreement was signed yesterday to formally start the construction works of the plant. The meeting was held at Bidyut Bhaban. The BIFPCL is the implementing agency of the plant, while BHEL is the contractor hired by it for the construction works.
BHEL has been asked to complete the construction works of the first unit within 41 months from today and the second unit within 48 months from today.
Earlier, on April 10, the long-awaited deal with Indian Exim Bank to finance the joint venture project was signed during Prime Minister Sheikh Hasina’s visit to India. The “facility agreement” between the BIFPCL and the Exim Bank was among the 13 MoUs and deals signed at a business forum in Delhi on April 10. The deal paved the way for starting the construction works from today. The construction of the plant was earlier scheduled to begin in March, but it delayed because of the delay in signing the finance agreement and tax disputes regarding BHEL.
Earlier, the BIFPCL was exempted from paying VAT for 10 years as it was implementing a project listed under the fast-tract project of the government. It had selected BHEL as the contractor of the plant in March last year. The National Board of Revenue (NBR) opposed the proposal of giving tax exemption to BHEL. It said if a contractor of the company gets another favour of tax exemption on machineries and equipment, then other companies implementing large projects in Bangladesh would want the same from
the NBR. In March last year, the BIFPCL and BHEL applied for tax exemption on machineries and equipment. Later, the Power Division,  the finance ministry and the NBR were given letters to grant their application of tax exemption.
The NBR, however, refused to grant any application.
Under the circumstances, Nasrul Hamid, state minister for power, energy and mineral resources, brought this issue to the attention of Prime Minister Sheikh Hasina during a meeting at the Prime Minister’s office.
After the meeting, Nasrul Hamid told reproters that there had been some misunderstandings about the tax exemption. BHEL is not only a contractor for the project, but also an investor. Besides, the machineries will imported by BIFPCL and not by Bhel. So, the BIFPCL should be given tax exemption as per the agreement.
Later, the finance ministry and the NBR provided their consent in giving the exemption.
About the construction works, which start from today, Prof. Anu Muhammad, member secretary of the National Committee for Protecting Oil, Gas, Mineral Resources, Power and Port, said that it shows that the government pay no heed to people’s voices.
 He also said the Sundarbans is not a mere cluster of trees and animals, rather it is an amalgamation of amazing biodiversity and ecosystem, which has been declared a world heritage site. “Because of some profit-driven individuals and corporations, the Sundarbans is facing danger on a regular basis. Several commercial and industrial activities, including construction of shipyards and cement factories, have already sprung in and around the jungle,” he added.  At a time when the country’s coastal regions are already under threat because of climate change, the implementation of coal-based projects like the Rampal plant will only add woe to people’s lives, he observed.
 “We will continue our movement against this atrocious project,” he said.