Tk 15,035 cr allocated for power, energy sectors

Finance Minister AMA Muhith today proposed Taka 15,035 crore for Power, Energy and Mineral Resources Ministry in the budget for 2016-17 fiscal for the overall development of the power and energy sectors.

Of the total Taka 15,035 crore, the finance minister proposed Taka 13,062 crore for the power division and Taka 1,973 crore for the energy and mineral resources division.

“We have targeted to raise electricity generation by additional 16,086 MW by 2021. To achieve this target, installation of 29 power plants with a capacity of 7,296-MW is in progress, while tendering processes of 20 power plants with a capacity of 6, 681-MW are underway,” the finance minister said while placing the national budget in the Jatiya Sangsad. 

Muhith said a total of Taka 23 crore has been proposed to allocate in non-development and Taka 13,039 crore in development budget for the power division while Taka 62 crore has been proposed to allocate in non-development and Taka 1,911 crore in development budget for the energy and mineral resources division.

The minister said there is a plan to construct eight power plants with a capacity of 4,435- MW, while a plan has been taken to install more power plants in Moheshkhali with private investment, adding, “We are laying emphasis on coal, furnace oil, nuclear energy and renewable energy-based power generation. We have already finalized a plan to install a power plant with coal as the main fuel.”

He said, “There is a plan for generating 3,100-MW electricity from renewable energy sources and setting up 10,000 kilometres transmission line and 1,50,000 distribution lines within 2021.”

Besides, the government is working on implementing the plan for importing 6,500-MW electricity by 2030 from neighbouring countries under sub-regional cooperation framework, he said.

In addition to installing new power plants with private investment, we have taken initiatives to re-power the old plants and set up new plants under public private partnership. Furthermore, alongside the IPP work is in progress to generate power with Export Credit Agency (ECA) financing under the concept of innovating financing, the minister mentioned.

“We have taken steps to augment gas reserve by expediting exploration programme. BAPEX plans to dig 53 exploration wells, 35 development wells and 20 work over wells by 2021. It is expected that 943 to 1,105 million cubic feet gas per day can be produced from these wells,” he said.

Muhith, however, said the government has decided to import LNG to meet the increasing demand for fuel in the country, adding, “Initiatives have been taken to construct a Floating Storage and Re-gasification Unit (FSRU)-based LNG terminal with a capacity of 1.38 lakh cubic meters at Moheshkhali in Cox's Bazar to store the imported LNG. We also have a plan to build 2 land-based LNG terminals at Moheshkhali in Cox's Bazar and Paira in Patuakhali.”

Source: BSS.