The 250megawatt coal-based power plant, built at a highly inflated cost of nearly $260 million, is the main customer of the mine. Both projects were built under Chinese supplier's credit.

One of the two units of this power plant has remained shut for several months due to coal crisis. The other unit is currently operating using coal in its stock and may be shut down in a month or so due to coal shortage.

The authorities claim that the mine may resume operation from mid-February.

But already the PDB last month floated a tender for importing coal in the face of such uncertainty.

"The PDB is now set to import 25,000 tonnes of coal worth Tk 12 crore from India. This coal is good enough to run one of the two units of the plant for only 25 days," said a PDB source.

The Indian coal is costing the PDB about $68 per tonne as against Barapukuria's $60 a tonne. Ironically, the PDB remains unable to pay the mining authorities about Tk 50 crore for purchasing coal.

Quality of the Indian coal however is much lower than Barapukuria's, and may not serve its purpose efficiently, the source pointed out.

The coal mine stopped production following a series of tussles between the developer of the mine and the government over various payments, Petrobangla sources said.

Both the mine and the plant, built by Chinese companies led by CMC, contain hundreds of flaws due to corrupt handling by the past three governments, especially the two led by BNP.

The highly unfavourable supplier's credit was pushed by the Hosaf group, led by Moazzem Hossain, in the early nineties, and the then energy minister Mosharraf Hossain (immediate past health minister) made the deal happen. Hosaf has been representing the builder of the mine and power plant, and consultants of both the projects, making it impossible for the government to ensure their proper implementation.

As a result of this deal, the mine and the power projects turned out to be perennial loss making ventures and white elephants for the nation. Bangladesh is facing difficulties in paying instalments and other costs of this project.

The Petrobangla through the Barapukuria Coal Mine Company Ltd (BCMCL) makes payments for the mine, and the PDB is responsible for payment for the power plant.

Petrobangla paid the CMC Tk 600 crore in four instalments between 1995 and 2004. It paid the fifth instalment of Tk 62 crore in October last year, a year behind the schedule. Petrobangla is supposed to pay the sixth instalment of Tk 100 crore in March.

In addition to timely payment of instalments, Petrobangla also owes the CMC annual charge for the service contract, plus a huge amount for procuring mine development equipment.

Despite strong diplomatic and political influence of CMC and Hosaf, profit-making entity Petrobangla did not have cash in its hand, and the situation turned into a hotch-potch.

Petrobangla annually earns nearly Tk 3,000 crore, which is almost entirely taken by the finance ministry.

Secondly, the PDB owes Petrobangla nearly Tk 50 crore as arrears for purchase of coal from the mine. Despite repeated reminders, the PDB could not pay that money, sources mentioned.

Again, the PDB is suffering from an acute fund shortage due to wrong government policies, and while it is absorbing an annual loss of over Tk 8,50 crore a year, it is not getting hundreds of crores of taka in arrears from Desa and other bulk consumers. The immediate past government did not even try to address this financial indiscipline.

After the CMC stopped coal production in October last, Petrobangla arranged funds for the fifth instalment and paid it. But the CMC still did not resume production as it asked for money for procurement of mining equipment on behalf of the BCMCL, and other extra costs related to the mine's development.

"There is no contract with the CMC for procurement of mining equipment. The CMC brought these tools on request from the BCMCL. In addition, the CMC that was awarded the service contract in 2005 has not actually completed the initial development of the mine. Yet, service contract should follow the development phase. Besides, there are many other contractual defects," said a competent source describing the hotch-potch in the project.

"But at this stage, we have no option but to resume coal and coal-power production," he added.

Recently, Petrobangla arranged and paid the CMC arrears for purchase of production materials worth about Tk 20-25 crore.

Sources said Petrobangla is now arranging the fee of CMC's service contract worth about $ 1.5 million.

On January 14, BCMCL Managing Director Aziz Khan, who has been appointed from Petrobangla recently to resolve this crisis, held a meeting with the caretaker government's energy adviser Tapan Chowdhury.

"We hope to resume coal production from the mine by mid-February," said Aziz Khan, when contacted over phone. "The deadlock over this project will hopefully be over soon."

When the mine's activity resumes, it will produce 2,000 tonnes of coal a day, he added.