The government is seeking applications from private investors by October 20 to set up 10-megawatt to 50-megawatt power plants in 23 locations with an aim to award licences to selected applicants by November 30.

A press release of Bangladesh Energy Regulatory Commission (Berc) yesterday spelled out the methods of selection and a tentative schedule for such plants to be set up under the government's revised small power plants policy.

It said the new policy allows private sponsors to set up power plants and arrange distribution of

electricity anywhere without involving the government agencies.

However, the government selected 23 locations from where the public agencies such as the PDB, the REB, Desco and Desa may buy power from the small plants.

In such cases, the private sponsors may apply in a prescribed set of forms to the Berc for a licence to generate electricity.

The Berc shall process the applications through public hearing inviting any objections on specific proposal from any stakeholder.

The small plants having power purchase contract will have gas at the same price as applicable to the

government-owned power stations. Selling price of power produced by them will be fixed by the Berc as per its tariff fixation procedure.

The utilities may select suppliers of electricity from sponsors during August-September 2005. Separate power purchase and fuel supply agreements is expected by the sponsors with parties concerned by December 15 with the expectation that the plants will be on commercial operations by August 20, 2006.

Industry insiders say the revised policy on small power plants eliminated tender process just to award the projects to private investors on the basis of their political allegiance, not on technical or business competence.