Dhaka, May 11 -- A massive amount of subsidies in the revised FY25 budget have given the interim government a big respite as it has already cleared a good amount of overdue payments to the private sector power producers, officials said on Saturday.

Till early this month, the government released Tk 460 billion in subsidies, which helped clear the outstanding capacity charges and other dues to the independent power producers (IPPs) up to December 2024 for supplying electricity to the national grid, they said.

Gradually, the government would be paying all the arrears and overdue payments to the IPPs by the next fiscal year, said officials at the Ministry of Finance (MoF) and Power Division.

The government owed the IPPs and the private-sec...