Expert body on coal policy meets today
Saturday, 24 November 2007
FE Report
An expert committee responsible for finalising the draft coal policy, sixth of its kind, meets again today (Saturday), amid uncertainty over its final shape by the end of this year, according to the sources.
Since its formation in June, the advisory committee headed by Abdul Motin Patwari, a former vice chancellor of BUET, has had several rounds of meeting, but failed to give the final shape to the policy.
"The committee members are scheduled to sit again today to discuss some of the pending issues. But the way things are moving, it may require having more meetings to finalise the policy," a source said.
"The meeting will discuss issues relating to coal sector development, financing of developing coal mines and strengtheining of government bodies to be tasked with overseeing the future industry," the source, who is also a member of the committee, pointed out.
Although the caretaker administration entrusted the expert panel to give a final shape to the policy, the committee failed to come up with concrete recommendations.
"If the advisory committee continues its foot-dragging, the policy will not be in place this year," another source said.
"This foot-dragging approach will certainly delay the development of the coal sector, which is still in its infancy. Bangladesh's energy security will be in peril unless the coal sector remains undeveloped," the source regretted.
Energy adviser Tapan Chowdhury recently announced that the government would finalise the coal policy by November.
The sources alleged that even the Bangladesh Energy Regulatory Commission, the energy sector watchdog, is not "serious" enough to develop the coal sector, while keeping its focus exclusively on the gas sector.
"Our gas sector has a history of sixty years and is considered a matured industry. But the coal sector remains nascent. So it requires urgent attention, given the future of the sector, and the energy security as well," a power sector expert pointed out.
In a recent meeting, the committee has decided not to export coal, keeping the country's long-term energy security in mind.
The committee members have also decided to keep the policy sufficiently flexible in case of the mining method-open pit or underground mining-rather it will be decided on the basis of individual cases, it is learnt.
"The policy is being redesigned with an eye to the country's energy security. That means exports can be allowed only if 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.
The sources at the energy division said the government will establish a separate entity to develop and oversee the potentially 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 official maintained.
The draft policy, formulated by the energy division, has placed top priority on ensuring the domestic energy security for at least 50 years and 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 topmost priority while attracting foreign direct investments in the coal sector.
"So far as the development of the sector is concerned, the public sector will be given priority in the coal policy. However, the government can take decision in the coal mine development by the private sector to avert potential energy crisis and ensure energy security in future," the policy maintained.
But a committee member stated that the policy will have the option of public-private partnership for the development of coal sector.
Given the energy security, the policy notes that private sector power generation must be encouraged as coal-fired independent power producers (IPPs) can set up coal based power stations in the vicinity of coal mines.
An expert committee responsible for finalising the draft coal policy, sixth of its kind, meets again today (Saturday), amid uncertainty over its final shape by the end of this year, according to the sources.
Since its formation in June, the advisory committee headed by Abdul Motin Patwari, a former vice chancellor of BUET, has had several rounds of meeting, but failed to give the final shape to the policy.
"The committee members are scheduled to sit again today to discuss some of the pending issues. But the way things are moving, it may require having more meetings to finalise the policy," a source said.
"The meeting will discuss issues relating to coal sector development, financing of developing coal mines and strengtheining of government bodies to be tasked with overseeing the future industry," the source, who is also a member of the committee, pointed out.
Although the caretaker administration entrusted the expert panel to give a final shape to the policy, the committee failed to come up with concrete recommendations.
"If the advisory committee continues its foot-dragging, the policy will not be in place this year," another source said.
"This foot-dragging approach will certainly delay the development of the coal sector, which is still in its infancy. Bangladesh's energy security will be in peril unless the coal sector remains undeveloped," the source regretted.
Energy adviser Tapan Chowdhury recently announced that the government would finalise the coal policy by November.
The sources alleged that even the Bangladesh Energy Regulatory Commission, the energy sector watchdog, is not "serious" enough to develop the coal sector, while keeping its focus exclusively on the gas sector.
"Our gas sector has a history of sixty years and is considered a matured industry. But the coal sector remains nascent. So it requires urgent attention, given the future of the sector, and the energy security as well," a power sector expert pointed out.
In a recent meeting, the committee has decided not to export coal, keeping the country's long-term energy security in mind.
The committee members have also decided to keep the policy sufficiently flexible in case of the mining method-open pit or underground mining-rather it will be decided on the basis of individual cases, it is learnt.
"The policy is being redesigned with an eye to the country's energy security. That means exports can be allowed only if 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.
The sources at the energy division said the government will establish a separate entity to develop and oversee the potentially 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 official maintained.
The draft policy, formulated by the energy division, has placed top priority on ensuring the domestic energy security for at least 50 years and 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 topmost priority while attracting foreign direct investments in the coal sector.
"So far as the development of the sector is concerned, the public sector will be given priority in the coal policy. However, the government can take decision in the coal mine development by the private sector to avert potential energy crisis and ensure energy security in future," the policy maintained.
But a committee member stated that the policy will have the option of public-private partnership for the development of coal sector.
Given the energy security, the policy notes that private sector power generation must be encouraged as coal-fired independent power producers (IPPs) can set up coal based power stations in the vicinity of coal mines.