The government yesterday renewed contracts with four gas-based rental power plants with renegotiated tariff rates to maintain smooth supply of electricity.

The decision came at a meeting of the cabinet committee on purchase chaired by Finance Minister AMA Muhith at the secretariat.

One of the companies, Energy Prima, applied for extension of its contract by five years for its 50-megawatt plant in Fenchuganj since the previous agreement expired in February.

But a technical committee of the government has extended its contract by three years with a reduction in power tariff from Tk 3.536 to Tk 3.262 a unit. 

Similarly, the 145MW Ghorasal power plant of Aggreko International Project also got an extension for three years with tariff cut to Tk 3.268 from Tk 4.75 a unit.

The tenures of Aggreko's 85MW plant in Brahmanbaria and 95MW plant in Ashuganj were extended for a year.

The new tariff for the Brahmanbaria and Ashuganj plants has been fixed at Tk 3.268 a unit, down from Tk 4.75 a unit. 

The decision came in the light of the government move in September 2013 to extend the contracts of rental and quick rental power plants from three to five years as the government requires more time to begin operating its coal-based power plants.

Earlier in April, the tenure of three other rental power plants run by Energy Prima was extended by three years and that of Venture Energy Resource by two years.