Dhaka, Jan. 12 -- In a major policy shift, the government would not issue any state sovereign guarantee in favour of privately-owned power plants, discouraging foreign direct investment (FDI) in power generation, sources said.

As part of the move, the government has decided not to ink implementation agreements (IAs) with the future power plant sponsors, according to the sources.

The government will then not shoulder any responsibility to pay the power plant owners in case the state-run Bangladesh Power Development Board (BPDB) fails to clear the dues, market insiders said.

"We don't require inking such IAs as we have moved out of the independent power producer (IPP) model," Energy and Power Adviser Muhammad Fouzul Kabir Khan told the F...