The government is set to build a diesel-fired 150 megawatt power plant in Saidpur, the fuel for which will be imported from India.
The cabinet committee on economic affairs on Wednesday approved the proposal for setting up the power plant through financing under an export credit agency.
This means the power division will invite tenders and the successful bidder will arrange the financing for the power plant.
Fuel for the proposed power plant will be imported from Numaligarh in India through a 10-inch wide pipeline, according to the power division proposal.
The construction of a friendship pipeline to supply gasoil from Siliguri to Parbatipur will be financed by grant-in-aid.
Bangladesh and India formally launched the commercial supply of high speed diesel (HSD) during Prime Minister Sheikh Hasina`s New Delhi visit in April this year. India plans to build a pipeline to carry HSD to Bangladesh.
Until the project is completed, HSD will be transported from Assam`s Numaligarh refinery to Bangladesh via rail and one such consignment was flagged off by the two prime ministers.