Committee members against export of coal as draft policy on the anvil
Monday, 22 October 2007
FE Report
A panel of experts tasked with finalising the much-debated coal policy has agreed 'conceptually' not to allow export of the mineral, keeping the country's long-term energy security in mind.
The committee members will, however, keep the policy sufficiently flexible, when it comes to the mining method-open pit or underground mining. Rather, it will be decided on the basis of individual cases, several committee members said.
"The policy is being redesigned keeping an eye on the country's energy security. That means exports can be allowed, if only surplus coal is available," a committee member said.
Since its formation, the advisory committee, headed by a former vice chancellor of Bangladesh University of Engineering and Technology (BUET) Abdul Matin Patwari, has had several rounds of meetings, but failed to give the final touch to the coal policy.
"It may require another four or five meetings to give it the final shape," the committee member told the FE Sunday.
He hinted that the policy would be finalised by the end of November.
Sources at the energy division said the government will establish a separate entity to develop and oversee the highly-potential multi-billion-dollar coal sector.
"It's crucial that the sector is developed in an efficient manner so that Bangladesh can attain the Millennium Development Goal," an expert maintained.
The draft policy, formulated by the energy division, has placed top priority on ensuring domestic energy security for at least 50 years and also kept the option of public sector investment in coal-mine development.
The draft has also made it clear that national interest will be given the top priority while attracting foreign direct investment in the coal sector.
"So far as development of the sector is concerned, the public sector will be given priority in the coal policy. However, the government can decide in favour of coal mine development by the private sector to avert any potential energy crisis and ensure energy security in future," the policy maintained.
But a committee member stated that the policy would have the option of public-private partnership for development of the coal sector.
Given the energy security, the policy notes that independent power producers must be encouraged to set up coal-based power stations in the vicinity of coal mines.
The committee members recently concluded a two-day site visit in the northern region on September 21-22 and had extensive talks with stakeholders, it has been learnt.
The immediate past BNP-led alliance government had initiated a move to frame the first ever coal policy and revised it several times, but the issues of coal export, mining method, environment and licensing regime stood in the way of its approval.
In a circular issued on June 21, the present caretaker administration constituted the advisory committee to give their recommendations on the draft coal policy after necessary examination and scrutiny.
A panel of experts tasked with finalising the much-debated coal policy has agreed 'conceptually' not to allow export of the mineral, keeping the country's long-term energy security in mind.
The committee members will, however, keep the policy sufficiently flexible, when it comes to the mining method-open pit or underground mining. Rather, it will be decided on the basis of individual cases, several committee members said.
"The policy is being redesigned keeping an eye on the country's energy security. That means exports can be allowed, if only surplus coal is available," a committee member said.
Since its formation, the advisory committee, headed by a former vice chancellor of Bangladesh University of Engineering and Technology (BUET) Abdul Matin Patwari, has had several rounds of meetings, but failed to give the final touch to the coal policy.
"It may require another four or five meetings to give it the final shape," the committee member told the FE Sunday.
He hinted that the policy would be finalised by the end of November.
Sources at the energy division said the government will establish a separate entity to develop and oversee the highly-potential multi-billion-dollar coal sector.
"It's crucial that the sector is developed in an efficient manner so that Bangladesh can attain the Millennium Development Goal," an expert maintained.
The draft policy, formulated by the energy division, has placed top priority on ensuring domestic energy security for at least 50 years and also kept the option of public sector investment in coal-mine development.
The draft has also made it clear that national interest will be given the top priority while attracting foreign direct investment in the coal sector.
"So far as development of the sector is concerned, the public sector will be given priority in the coal policy. However, the government can decide in favour of coal mine development by the private sector to avert any potential energy crisis and ensure energy security in future," the policy maintained.
But a committee member stated that the policy would have the option of public-private partnership for development of the coal sector.
Given the energy security, the policy notes that independent power producers must be encouraged to set up coal-based power stations in the vicinity of coal mines.
The committee members recently concluded a two-day site visit in the northern region on September 21-22 and had extensive talks with stakeholders, it has been learnt.
The immediate past BNP-led alliance government had initiated a move to frame the first ever coal policy and revised it several times, but the issues of coal export, mining method, environment and licensing regime stood in the way of its approval.
In a circular issued on June 21, the present caretaker administration constituted the advisory committee to give their recommendations on the draft coal policy after necessary examination and scrutiny.