Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood, MP, on Tuesday said the government has adopted an investment-friendly policy to increase private investment in the energy and power sectors.
He also observed that creating opportunities to earn money alone would not be enough for sustainable development of the country's industries and economy; rather, sustainable infrastructure also needs to be developed.
The minister made the remark while addressing as the chief guest a seminar titled “Crisis in the Energy Sector: Prospects and Ways Forward” organized by the Forum for Energy Reporters Bangladesh (FERB) at Dhaka Club.
State Minister for Power, Energy and Mineral Resources Aninda Islam Amit, MP, attended the seminar as the special guest.
Former professor of Bangladesh University of Engineering and Technology and energy expert Dr Ijaz Hossain presented the keynote paper.
Iqbal Hassan Mahmood said the issue was being considered seriously so that an accident at any single LNG facility would not have a negative impact on industries across the country.
Discussions are also underway with the relevant parties on alternative arrangements and timing to address possible crises in LNG supply, he said.
He said the government remained alert to ensure that industries do not suffer, adding that discussions are underway with industrial entrepreneurs, intellectuals and experts to find ways to address the current crisis in the energy sector.
Iqbal Hasan Mahmood also referred to the meetings of the prime minister with industrial entrepreneurs within a short time after assuming office.
Cautioning against setting up coal-fired power plants, he said developed countries have reservations about coal-based power generation. Even in many cases, financing for such projects has been stopped. "So, we have to move forward very cautiously regarding these power stations," he said.
Saying that the government has taken an aggressive plan for solar power generation, the minister mentioned a new policy had been formulated within just two months. Various facilities have been kept in the policy to make it investment-friendly, including a five-year tax holiday, he added.
He said the government would implement the facilities highlighted in the policy to stop harassment of investors in the solar power sector.
The minister said: “It is our desire, and I think it is possible that we can achieve our target of 10,000 megawatts."
He said importance was being given to the OPEX model, particularly in solar power generation, and there is a plan to expand rooftop solar power gradually across the country, starting from Dhaka city.
Private investment would be encouraged instead of government investment in this regard, he said, adding that discussions had already been held with the two administrations of the Dhaka City Corporation.
He continued that an initiative is being taken to identify area-based sites and invite investors.
The minister said investors would be able to install rooftop solar power facilities, like cable television or Wi-Fi (internet) businesses, and collect bills from customers. Therefore, there is no need to depend on the government for everything, he added.
The minister also spoke of a partnership model for the use of government land in large solar power projects, under which the government could become a partner in the investment by providing land.
He said the government could provide land for the project and the value of that land could be included as the government's share within the investment structure. "I think there can be no better proposal than this," he said.
Informing about plans to further involve the private sector in importing fuel oil, the minister said unnecessary panic had been created in the country over fuel oil supplies in recent times centring on the conflict in the Middle East.
He said long queues were formed at petrol pumps in panic despite having adequate stock. Later, incidents of black-market trading and online-based fuel sales were also seen.
He said discussions had been held with the prime minister about allowing the private sector to import fuel oil following the situation.
The minister said allowing the private sector to operate alongside the government system would increase competition in the market and strengthen the supply system.
"Let there be one government [operator] and another private one, as in India," he said.
Rejecting allegations that the fuel import policy was being formulated to benefit a particular company, the minister said if it was a general law or policy, it would not be for any particular company and would apply equally to all.
"The notion that we are doing this to give it to a particular company is not correct," he said.
Urging against spreading confusion or attempts to worsen the crisis in the energy sector for political purposes, the minister said everyone would have to play a responsible role in the national interest.
He assured that investment proposals submitted by the private sector would be approved quickly if they were attractive and helpful to the industry.
Iqbal Hasan Mahmood said: "If the proposal is attractive and helpful for our industry, certainly we will not waste any time."
He further said the government would review private sector proposals seriously. After receiving a proposal, necessary approvals would be arranged following discussions and scrutiny with the concerned parties.
