The government will turn state-owned Bangladesh Power Development Board (BPDB) into a holding company.
On completion of the process, some companies in power sector will be brought under the umbrella of BPDB.
Earlier, the government took decision to turn BPDB to be a corporation.
The decision came following the directive of Prime Minister Sheikh Hasina, said a letter sent on March 7 signed by Power Division senior assistant secretary Ireen Pervin.
The Power Division has asked the BPDB to make a time line of action plan and inform the power division regarding its progress.
To convert BPDB into a holding company, its management structure will undergo radical changes for making a system of accountability, said a Power Division official, seeking anonymity.
Later, the holding company will be given specific financial and technical targets, including reduction of distribution system-loss, he added.
In February 2014, Sheikh Hasina asked BPDB to turn it corporation like Petrobangla for smooth power distribution and a profitable entity.
However, BPDB officials and employees vowed to resist the government move.