In the upcoming budget, power transmission and distribution sectors are likely to get the lion’s share in terms of budget allocation compared to the generation sector. Transmission and distribution sectors are likely to get almost 70% of the total budget allocation for the energy and power sector in the Annual Development Program (ADP) of the next FY.
According to the sources of the Ministry of Power Energy and Mineral Resources (MPEMR), a total of Tk 30,736.38 crore is being proposed for the country’s energy and power sector as budget allocation for the upcoming FY 2020-21. Finance Minister AHM Mustafa Kamal is expected to submit the budget for the upcoming FY 2020-21 in the Parliament on June 11.
According to the insider sources, MPEMR has proposed to allocate Tk 27,597.73 crore for a total of 93 projects of the power sector and Tk 3,136.65 crore for a total of 24 projects of the energy sector for the upcoming budget. Of the total allocation for the energy sector, Tk 260.29 crore will be taken from the Gas Development Fund.
A total of Tk 26,447 crore is proposed to be allocated for the power sector in ADP for the FY 2020-21 while, the revised budget for the FY 2019-20 included Tk 24,18.58 crore for the power sector alone. Which means, the power sector is likely to get a slight cut in budget allocation in the next fiscal year.
MPEMR proposed a total of TK 11 thousand 138 crore 62 lakh to be included in the ADP for the development of the power distribution sector and another 7 thousand 543 crore 27 lakh TK for the power transmission sector. Therefore, according to the proposal of MPEMR, the transmission and distribution sectors collectively to get around Tk 18,681.89 crore which is around 70% of the proposed ADP allocation for the energy and power sector. However, the power generation sector is expected to get around 7 thousand 765 crore and 11 lakh TK in the upcoming budget, according to the proposal.
The highest allocation in distribution is being proposed for the electrification programs of the rural areas. Therefore, Bangladesh Rural Electrification Board (BREB or REB) is likely to get the most budget allocation, as per the power distribution budget concerns. A total of 5 thousand 703 crore 80 lakh TK has been proposed as budget allocation for the distribution programs of REB while, Tk 2,200.98 crore is proposed for Dhaka Power Distribution Company (DPDC), TK 1 thousand 706 crore 75 lakh for Bangladesh Power Development Board (PDB), TK 730 crore for West Zone Power Distribution Company Ltd. (WZPDCL), Tk. 450 crore for Northern Electricity Supply Company Ltd. (NESCO) and Tk. 346.99 crore for Dhaka Electric Supply Company Ltd. (DESCO). Whereas, for the power transmission sector, a total of Tk 7,543.27 crore is being proposed to be allocated for Power Grid Company of Bangladesh (PGCB).
In terms of power generation, the Coal Power Generation Company Bangladesh Ltd. (CPGCBL) is expected to get an allocation of Tk 4,032 crore which is highest in the power generation sector. The proposed allocation for CPGCBL includes several power plants namely, Matarbari 1200 MW, Bangladesh-Singapore 700 MW, Japan Sumitomo 1200 MW. A total of Tk 2 thousand 196 crore 11 lakh is proposed to be given to PDB. The proposed allocation for PDB includes several power plant projects namely, 330 MW power plant of Khulna, 400 MW of Bibiana, 150 MW of Syedpur and repairment of Ghorashal power plant. A total of TK 520 crore is proposed to be allocated for Ashuganj Power Company Limited.
A total of TK 393 crore is being proposed for North-West Power Generation Company Ltd, which will be used to build the connecting roads for 800 MW power plant of Rupsha, Khulna and Payra power plant of Patuakhali. The MPEMR also proposed to allocate TK 350 crore for Electricity Generation Company, TK 150 crore for Rural Power Company and Tk 124 crore for B-R Powergen Company Ltd.