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First-time Tk 2b for green energy, ocean exploration

FE REPORT | June 07, 2024 00:00:00

The government is set to allocate a total of Tk 2 billion for the development of renewable energy and to explore the potential of marine resources for the first time.

"Considering the importance of renewable energy in building a developed, prosperous, smart and sustainable Bangladesh by 2041, I am proposing a special allocation of Tk 1.0 billion to encourage its development and use," said Finance Minister Abul Hassan Mahmood Ali in his budget speech on Thursday.

Similarly, the minister, considering the importance of marine resources, proposed Tk 1 billion for research and development purposes.

The government's overall allocation for the power and energy sector in FY25 is proposed to be Tk 303.17 billion, which is 12.93 per cent lower than Tk 348.19 billion in FY24.

However, the proposed allocation for FY25 is 7.05 per cent higher than the revised budget for FY24.

Mr Ali also proposed raising the import duty on materials used for establishing or operating compressed natural gas (CNG) or liquefied petroleum gas (LPG) stations from the current rate of 3 per cent to 5 per cent.

He also recommended imposing a 5 per cent customs duty (CD) on imports of plant, equipment and erection materials by power generation companies, the Rampal power plant and rental power companies.

This notification is proposed to remain in effect until June 30, 2028.

Currently, different types of power generation companies can import these materials duty-free.

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