The government has reduced subsidy allocation for the power and energy sectors by 30% in the proposed budget for the FY2014-15.
The amount is Tk9,400 crore against Tk13,450 crore in the FY2013-14.
In his budget speech, Finance Minister AMA Muhith mentioned the subsidy as lending to Power Development Board (PDB) and Bangladesh Petroleum Corporation (BPC).
Muhith announced a total budgetary allocation of Tk11,540 crore for the power, energy and mineral resources sectors.
The allocation marked a 17% increase from the revised budget of the outgoing fiscal year.
Muhith renewed a previous announcement that every household will get electricity within next five years.
Finance minister said the target to achieve 100% power coverage by 2019 will be made a success through implementation of long and medium-term plans.
“You might be aware that we had set a target of generating 20,000 MW of electricity by 2021. We have re-fixed this target at 24,000MW,” Muhith stated in his budget speech.
The allocation including development and non-development sectors is 4.6% of the total budget outlay.
Of the amount, power division will get Tk9,284 crore while energy and mineral resources division will receive Tk2,256 crore.
In the outgoing fiscal, the budgetary allocation for the ministry totalled Tk11,351 crore, which was later revised down to Tk9,902 crore.
In his budget speech yesterday, Finance Minister AMA Muhith said the government has placed the power and energy sector on its top priority list and is therefore providing it with resources.
“However, the power production capacity could not be utilised fully due to inefficient transmission and distribution system.”
AMA Muhith stated that they would be taking special measures to get rid of “the adverse situation soon.”
He cited “remarkable strides” have also been made in the energy sector.
“We have added 895m cubic feet gas per day (mmcfd) to the national grid.”
The minister announced the ongoing development works in power sector will continue throughout their tenure.
“We will ensure reasonable extraction and utilisation of natural gas. Steps are underway to enhance the capacity of BAPEX.”
“Special emphasis will be laid on discovery of new gas and oil fields. In addition, scope of assistance and cooperation with international organisations to explore new gas and oil fields in the coastal and deep sea areas will be widened.”
Muhith added: “We will take necessary steps to dig 21 wells in order to enhance gas generation capacity by 2015-16.”
He also announced that the government will take initiatives to reduce the misuse of gas through enhancing managerial efficiency.
“Import of LNG from abroad will continue. We are, however, considering the establishment of an LNG terminal and necessary infrastructure in Maheshkhali Island.”
Finance minister proposed producing high quality LPG cylinders locally and raising import duty on the product to 25% from 5%.
He also proposed increasing tariff value on crude petroleum oil to $40 per barrel from $32.
Accordingly, tariff values on other refined petroleum products have been proposed increasing from 31% per liter to 40%.
Further, Muhith withdrew 15% supplementary duty on filament bulb.
