Under a joint venture initiative, the government is working to form Bangladesh Power Equipment Manufacturing Company Limited (BPEMC) to manufacture electric equipment and smart pre-paid meters in the country.
A joint venture company (JVC) between the state run Rural Power Company Limited (RPCL) and Chinese privately run Shenzhen Star Instrument Company Limited (SSICL) would form BPEMC for manufacturing electric equipment and smart pre-paid meters, according to a ministry official.
The official said the proposed BPEMC would have a 51 per cent stake and the SSICL a 49 per cent stake under the joint venture. The authorised capital of the BPEMC will be Taka 40.0 million and the paid-up capital Taka 36.0 million.
Meanwhile, both the companies signed the Non-binding Memorandum of Understanding (MoU) and a draft Joint Venture Agreement (JVA), the official added.
The official said the JVA includes JVC formation, capital structure, governing body, responsibility finalization of both sides, project implementation, accounts operation and inspection, distribution of profit, which would be implemented through Memorandum of Association (MoA) and Articles of Association (AoA) of the JVC.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid said that with setting up of the new company in the country, consumers wiould get electric equipment and smart pre-payment meters at a reasonable price from here.
“The produced power equipment and smart pre-paid meters will meet local demand and later surplus equipment and smart pre-paid meters will be exported. Prices of these products will be reasonable and the new company will create employment opportunity,” he said.
The proposed company will have five members in its governing body- three will be nominated from Rural Power Company Ltd (RPCL) and two from Shenzhen Star Instrument Company Ltd. The chairman will be nominated from three board members of the RPCL.
The governing body will appoint a chief executive officer (CEO), a chief technical officer (CTO) and a chief finance officer (CFO) for operating the BPEMC.
The state minister said that the government has undertaken various steps to develop the power and energy sector including power generation, transmission and distribution system, adding, “We have set our goal to supply uninterrupted power to all at an affordable price.”
Earlier, the cabinet at a meeting with Prime Minister Sheikh Hasina in the chair, approved the proposal of forming Bangladesh Power Equipment Manufacturing Company Limited (BPEMC).