Power Division seeks Tk 30,706cr
Published : Tuesday, 18 May, 2021 at 12:00 AM Count : 133
The Power Division has sought TK 30,706 crore from the Finance Ministry to implement its 73 projects for the Fiscal year 2021-2022.
It also sought TK 8,000 crore-Tk 9,000 crore as a subsidy to minimize the loss of the state-owned power generation company Power Development Board (PDB).
In fact, the PDB has sought the money from the Power Division as subsidy, calculating its losses for the upcoming year, Power Division sources said.
However, the Finance Ministry planned to allocate TK 26,118 crore for the power Division for the next fiscal year to implement its plans projects which are mostly related with the power transmission and distribution side.
Meanwhile the Energy Division has sought TK 2860 crore to implement its 28 projects for 2021-2022 fiscal year, Energy Division sources said. Of them, Bangladesh Petroleum Corporation (BPC) submitted 10 development projects mostly related to pipelines, Petrobangla submitted 17 development projects related to drilling, augmentation, appraisal wells drilling and fresh well drillings.
Unfortunately, the Geological Survey of Bangladesh (GSB) could manage the Energy Division to implement only one project. The Finance Ministry agreed to allocate the amount sought by the Energy Division to implement the energy projects for the next fiscal year.
Last year Power Development Board sought Tk 7,500 crore as subsidy from the Finance Ministry but in the upcoming year it needs TK 1000 crore more as it (PDB) needs to pay a huge amount of money to the private producer as 'Capacity payment'.
"We have planned to install huge amount of grid and distribution sub-stations to address the bottlenecks of the transmission sector," a senior official of the Power Division told this correspondent. Bangladesh Petroleum Corporation (BPC) has also sought Tk 900 crore subsidies, although it has made a profit in the current fiscal year (2020-21) as fuel price marked a drastic fall in global market, which has remained stable for the last six months.
"We sought this amount as the cumulative loss of the state- owned organization," said a BPC official.
The Power Division sought Tk 7,200 crore and the Energy Ministry sought Tk 5,000 crore as subsidy to run the liquid fuel based power plants, BPC sources said.
The BPC is earning a profit of Tk35 per litre octane, Tk14 per litre kerosene, Tk13 per litre diesel, Tk20 per litre furnace oil and Tk19 per litre jet fuel.
"The subsidy would continue, as the government plans minimizing the loss of state-owned PDB through giving direct subsidy to the power sector so that it would not impact tariff," a senior official at the Power Division said, preferring anonymity.
"As part of the Mega Plan to generate 60,000 MW by 2041, the government has already been able to enhance the electricity generation capacity to 24,000 MW including captive and renewable energy, extend the electricity facility to 97 percent of our population and raise the per capita electricity generation to 510 kilowatt-hour..this time we are focusing on transmission sector and quality electricity so that we can implement some energy efficient plan," State Minister For Power, Energy and Mineral Resources Nasrul Hamid told the Daily Observer.
Currently, 48 power plants with a combined generation capacity of 16,875 MW are under construction and the signing of agreements for construction of 12 power plants with a generation capacity of 2,785 MW is under process.
Further, the tendering processes for 6 power plants with a generation capacity of 650 MW are underway, he said, adding: "We have also taken up plans to construct 16 more power plants with a generation capacity of 19,100 MW in the near future."
As the supply from domestic natural gas is unable to meet the ever-increasing demand for energy, he said two floating storage and regasification Units (FSRU) with a daily capacity of 1,000 million cubic feet have been installed at Maheskhali.