The Power Division has sought Tk 2.8 billion less fund in the upcoming revised development budget.
It attributed the demand for a cut in funds to failure in implementing project works in time and apprehending slower execution in the remaining months amid ongoing political deadlock, officials said Wednesday.
Power Division officials said they have requested the Planning Commission to cut their development budget by Tk 2.80 billion to Tk 89.47 billion from the current allocation of Tk 92.27 billion in the Annual Development Programme (ADP).
"Some of our projects have failed to fulfill the action plan on project implementation work in the first half of the current fiscal. In addition, the political unrest has affected the development works. So, we are forced to sacrifice some of our allocated funds," said a senior Power Division official.
During July-December period of the current fiscal year (FY) 2014-15, the Power Division, the second highest development fund holder, spent only Tk 25.62 billion fund, only 28 per cent of its total allocations in the ADP.
The Planning Commission (PC) has started work on revision of the ADP under the government's national budget for the current FY2015 following weak pace of execution of development projects and lower fund utilisation than expected during the first half of the current FY.
Power supply is the top priority sector of the government as the country is struggling to overcome a huge electricity supply shortfall against the growing demand every year.
According to the Power Sector Master Plan 2010, if Bangladesh wants to attain a 8.0 per cent gross domestic product (GDP) growth, the electricity demand would be 34,000-megawatt (MW) by the year 2030.
The Master Plan forecast that the generation capacity is needed to enhance it to about 40,000 MW a day. Presently, the generation capacity is nearly 10,500 MW.
The Power Division has been implementing 70 development projects with Tk 92.27 billion allocation in the original ADP of the current FY2015 for improving the electricity supply situation of the country.
In its Tk 89.47 billion fund demand in the revised ADP, the Power Division has sought Tk 49.60 billion from the government's own exchequer and Tk 39.87 billion from project aid, to be provided by multilateral and bilateral donors.
The Division has undertaken some priority projects including setting up of 1200MW Matarbari power plant, 450MW Bibiyana-3 power plant, and some other big transmission and distribution line installation projects under the current ADP.
"We are hopeful of utilising the proposed money in the upcoming revised ADP in the current fiscal as we have different power generation and transmission schemes to boost the country's electricity supply," said a Power Division official.
The government is committed to generate 20,000 MW electricity by FY2021 where it needs investment worth billions of dollars.
The PC official said the Commission is reviewing the lower fund proposals of the Power Division. "After scrutiny, we will finalise the new outlay for the revised development budget," he added.
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