The proposed budget has allocated Tk 115.40 billion for power and energy sector for the fiscal year 2014-15, which is 4.61 per cent of the total budget allocation and around 1.0 per cent of the GDP.
For the ADP in FY 2014-15, Finance Minister AMA Muhith has proposed allocation of Tk 11.496 billion for the power and energy sector, which is 14.3 per cent of the total allocation.
Of the ADP allocation, Power Division under the ministry of power, energy and mineral resources (MPEMR) will get Tk 92.73 billion, and Energy and Mineral Resources Division will get Tk 22.23 billion, he said.
In his budget speech, the minister has proposed establishment of a special fund to produce 800 megawatts (mw) of electricity by 2015 using renewable energy.
"Size of the fund will stand at Tk 4.0 billion with this year's allocation," he said.
The government has re-fixed the target of generation at 24,000mw of electricity, instead of the previously set target of 20,000mw by 2021 to cope with the growing demand, he said.
To achieve the target, the government will raise electricity generation capacity to 18,162mw by 2017, take initiatives to generate and allocate electricity through bilateral,
multilateral and regional agreements with neighbouring India, Bhutan and Nepal.
The government will establish coal-based power plants with a generation capacity of 1426-mw by 2017 which will shift the burden from gas, that contributes 78 per cent of power generation in the country, said the finance minister.
More than 60,000 pre-paid meters would be installed to ensure efficiency, transparency, and accountability in power management.
"Our persistent endeavours over the last few years to improve the power situation in the country have paid off greatly," said Mr Muhith.
"Power generation capacity has now gone up to 10,341mw, which was only 4,931mw in 2009. The people are now free from sufferings caused by terrible load shedding," he said.
However, the power production capacity could not be utilised fully due to deficiency of transmission and distribution lines and a drop in effective power generation capacity of a few very old power plants, he added.
The government has been able to add 895 million cubic feet per day (mmcfd) of gas to the national grid over the past several years.
"Alongside, we will take necessary steps to dig 21 wells in order to enhance gas generation capacity by 2015-16. We shall ensure reasonable extraction and utilisation of natural gas. Steps are underway to enhance the capacity of state-owned Bangladesh Petroleum Exploration and Production Company Ltd (Bapex)," he said.
Special emphasis will be laid on the discovery of new gas and oil fields.
In addition, scopes for assistance and cooperation with international organisations to explore new gas and oil fields in the coastal and deep-sea areas will be widened, he said.
"We shall take initiatives to reduce the misuse of gas by enhancing managerial efficiency in this sector. Import of LNG from abroad will continue," he added.
The government is considering the establishment of an LNG terminal and necessary infrastructure on Maheshkhali Island in Cox's Bazar.
Increased dynamism sought for power, energy sector
FE Report | Published: June 06, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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