The sum is 2.71% higher than the outgoing fiscal year's allocation
Bangladesh’s power and energy sector are set to receive an allocation of Tk27,484 crore through the proposed budget of the 2021-22 fiscal year— Tk726 crore or a little over 2.71% increase from the outgoing year’s amount.
The Power Division will get Tk25,398 crore, while the rest (Tk2,086 crore) will go to the Energy and Mineral Resources Division.
In the 2020-21 fiscal year, the sector was allocated Tk26,758 crore. The budgetary allocation then, however, was reduced by Tk1,293 crore compared to the amount of Tk28,051 in the 2019-20 fiscal.
The power and energy sector will get 12.1% from the allocation for the annual development program or ADP of Tk 2,25,324 crore in the next fiscal year. The Power Division is set to get Tk 25,349 crore and the Energy and Mineral Resources Division Tk 2, 018 from the ADP.
Finance Minister AHM Mustafa Kamal proposed the latest allocation in the House on Thursday, when he termed the achievement the power sector alone bagged in the past 12 years “unprecedented” as electricity generation saw a five-fold rise since then.
The total power generation capacity (including captive and renewable energy) now stands at 25,227 MW as of May 2021, with 99% of the country already brought under electricity coverage, he said.
“To meet the growing demand for power in Bangladesh, 38 power plants with a capacity of 14,115 MW are under construction, and contracts have been signed for the construction of another 20 power plants with a capacity of 2,961 MW,” the minister said.
Besides, six power plants, he said, with a capacity of 650 MW are in the process of tender, and construction of 33 power plants with a capacity of 15,019 MW has been approved.
Due to the strict measures taken by the government, the system loss in electricity has reduced from 14.33% to 8.73%.
Mentioning the efforts to lay all distribution lines and substations underground in the metropolitan area to modernise the power system, Kamal said: “There is a plan to increase the number of transmission lines to 28,000 km and the number of distribution lines to 6.60 lakh km by 2030.
“We expect that through the implementation of these projects, it will be possible to meet the growing demand for transmission and distribution of electricity throughout the country,” he added.