Daudkandi 1320 MW (Meghna) Coal Power Plant

Jun 25
3 min read

Current Status: Canceled

Daudkandi 1320 MW Coal Power Plant, also known as Meghna USC Coal Power Plant, is a canceled ultra-supercritical (USC) thermal power plant, was to be situated in Daudkandi Upazila in Cumilla District of Bangladesh (Location: 23.5333, 90.7166) approximate. It was proposed by Meghna Group of Industries (MGI), specifically through its subsidiary Meghna Electricity Generation Co Ltd in cooperation with Power Construction Corporation of China (PowerChina). According to the plan, the power plant was to start commercial operation in. But no progress was seen by 2020 when the Government of Bangladesh (GOB) declared not to build anymore coal power plants in the country. Meghna Group also removed the information on the power plant from their website.

Capacity

The installed capacity of the power plant was supposed to be 2×660 MW, totalling 1,320 MW .

Context

On 14 October 2016, Meghna Group entered into agreements with the Power Construction Corporation of China, a state-owned entity, to generate 1,320 megawatts of electricity through the construction of two coal-fired power plants. The agreements were signed as part of 13 deals worth a total of $13.6 billion during Chinese President Xi Jinping's state visit to Dhaka. Mostafa Kamal, chairman of Meghna Electricity Generation Co Ltd (a unit of Meghna Group), confirmed to The Daily Star that the plants would be set up at Daudkandi in Comilla at a cost of $1.75 billion (TDS, 2016). The Power Construction Corporation of China attempted to find Chinese financing for this project but as of September 2018, no funding had been allocated and the ownership stake in the power plants was collaboratively determined by both parties (AidData, 2023). The commencement of the plants' construction was anticipated to take at least two years (TDS, 2016). The Daudkandi power station project was proposed to be sent to Bangladesh Power Development Board and the power ministry for approval after the MOU signing, but there were no known developments after 2016 (GEM, 2025).

In addition, on November 19, 2020, The Daily Star reported that Bangladesh's power, energy and mineral resources ministry had finalized an energy plan that cancelled all coal plants except five under construction. The Daudkandi power station was expected to be formally cancelled as a result, although it was not confirmed (Roy, 2020).

Land Acquisition

It was canceled before it acquired any land.

Finance

Two power plants, each capable of generating 660 megawatts, were planned to be established in Daudkandi, Comilla, at an estimated cost of $1.75 billion USD (TDS, 2016). As of September 2018, no funding had been allocated. The project relied on Chinese government-arranged financing that never materialized.

Contractors

No information regarding contractors as it was canceled.

Fuel Supply

The plant was described as an ultra-supercritical (USC) coal-fired power plant, implying imported coal would be used as fuel, consistent with other Daudkandi-area coal projects that specified imported coal from Indonesia or Mozambique. No specific coal supplier was identified before the project was cancelled.

Power Generation

No power has been generated as the power plant has been cancelled.

Environment

Compliance with Section 12 of the 1995 Bangladesh Environment Protection Act required industries, including potentially polluting entities like power plants, to undergo both an Initial Environmental Examination (IEE) and an Environmental Impact Assessment (EIA), as specified in the 1997 Environmental Conservation Rules (MOLJPA 1995; MOEFCC, 1997). The absence of an Environmental Impact Assessment (EIA) report for the power plant in the past raised concerns. An environmentally conscious alternative involves implementing a carbon tax and transitioning towards renewable energy sources. According to the environmental conservation rule 2023 the project falls in the “Red” indicating it as a potential harmful project for the environment (MOEFCC 2023).

References

AidData (2023). 'China Power Construction Corporation to construct Daudkandi Coal Power Plant worth $1.75 billion”. accessed 2023.
MOEFCC (1997). “The Environment Conservation Rules, 1997” The Environment Conservation Rules: 27 August, 1997.
MOEFCC (2023). “The Environmental Conservation Rules”. Ministry of Environment, Forest and Climate Change (MOEFCC): 5 March 2023.
MOLJPA (1995). ‘Bangladesh Environment Conservation Act 1995’. Legislative and Parliamentary Affairs Division, Ministry of Law, Justice and Parliamentary Affairs (MOLJPA). 16 February 1995.
Roy (2020). “Future not coal power” The Daily Star (TDS): 18 November 2020.
TDS (2016). “Beximco, Meghna tie up with Chinese investors for power”. The Daily Star (TDS): 18 October 2016