Bangladesh has approved the formation of the $8bn Coal Power Generation Company (CPGC) to invest in coal-fired plants.

CPGC will also invest in private companies, which would generate 20,000MW of energy by 2030.

The company will be set up under the Bangladesh Power Development Board (BPDB), which will hold a 30% interest, leaving the rest for local and foreign private firms, forging joint ventures, reports Reuters.

The government has approved construction of two coal-fired plants with a capacity of 1,320MW each in Khulna and Chittagong, and the importation of three million tons of coal to operate these plants.

A tender for the construction of four coal-fired power plants of 150-650MW each at Chittagong, Mawa and Khulna, has also been approved.