Workers loss job as KPCL shut; officials deny allegations
Workers of Khulna Power Company Ltd (KPCL) have been left jobless following the shutdown and subsequent sale of three power plants in Khulna and Jashore, while former employees have gone to the labour court seeking payment of their outstanding dues.
Operations at all three plants have since been suspended and the plants were subsequently sold to a foreign company, seeking anonymity a plant official, who is bearing top position in the company said.
In addition, United Payra Power Ltd (UPPL), a 150MW HFO-fired power plant, started commercial operations in Patuakhali in 2021. KPCL reportedly owns a 35 percent stake in the plant.
KPCL was incorporated as a public limited company in 2009 and was subsequently listed on the Dhaka and Chittagong stock exchanges in 2010. The company had been engaged in generating and selling electricity using fuel oil, particularly heavy fuel oil (HFO).
The 110MW barge-mounted power plant in Kashipur-Daulatpur was shut down in 2022 and reportedly sold to a foreign company.
Later, in 2024, operations at the 115MW HFO-fired KPCL Unit-2 and the 40MW HFO-fired plant in Noapara, Jashore, were also completely suspended. The two plants were subsequently sold to a foreign company, according to people familiar with the matter.
The closure and sale of the power plants have left more than 100 KPCL employees without jobs.
Former employees said they had worked for the company for years before losing their jobs following the closure and sale of the plants. They also alleged that several of their lawful dues remain unpaid.
Seeking payment of their dues, the terminated employees filed a case against the company with the labour court. The case number is Labour-68/2025.
The former employees alleged that they lost their livelihoods after the company abruptly shut down and sold the power plants. Many of them are now struggling financially to support their families, they said.
They demanded prompt payment of their salaries, benefits, compensation and other lawful dues based on their length of service.
When contacted, Mashiul Islam, said, “As far as I know, the company has paid everyone’s dues. However, you may contact the finance department at the head office regarding the matter.”
Mamun Sarwar, chief financial officer of the company’s head office, said he was unaware of the labour court case.
He said the company had paid the dues of all workers and officers. “If anyone still has any dues, they can lodge a complaint with our head office, and their legitimate dues will be paid,” he said.
However, he said he had no knowledge of the labour court case filed by the former employees.
The former employees hope that the dispute will be resolved quickly through the labour court and that all their outstanding lawful dues will be paid by the company in accordance with the law.
A 110MW barge-mounted power plant in Kashipur-Daulatpur of Khulna city, one of the country’s oldest private-sector power plants, was established in 1998.
The plant began operations under KPCL, a joint venture of United Group and Summit Group. In 2011, the company set up a 115MW HFO-fired power plant, known as KPCL Unit-2. In the same year, its associate company KJAPCL established another 40MW HFO-fired power plant on its own land in the industrial area of Noapara in Jashore.
