At least Tk10,000 crore should be allocated for energy alone
Because import dependency is high and we have a taka crisis and a dollar crisis. And it is mainly because of that, a crisis has arisen in the power and energy sectors
The biggest problem we have now is an economic problem not related to the power sector.
The problem in the power sector is the need for foreign currency resources due to import dependency. Because import dependency is high and due to the economic crisis, we have a taka crisis and a dollar crisis.
Mainly because of that, a crisis has arisen in the power and energy sectors. When prices are increasing, we also need to increase supply as well.
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Now, if we talk about the budget, it is basically a plan for the development of the government. It outlines what income we have, how to spend it, and how to increase the income. This is what the budget is about.
There are some unfinished projects in the power sector. Among them, more priority should be given to the transmission line and distribution problems. In terms of generation, we are able to meet the demand as per our capacity.
We do not have the money right now to invest generation anew, and it is not worth investing in generation afresh. In the case of ongoing projects such as renewable energy, if money is needed, new investments can be made.
I think the budgetary allocation for the power sector will be less this year. Excluding transmission and distribution since this year, developmental work has been limited. Perhaps some support will be needed in Matarbari, some support will be needed in Rooppur, and money will have to be given to them too. Otherwise, the projects will be delayed, which will cause more problems.
I think the energy sector will need much more allocation this year than the power sector. Petrobangla has big plans for gas production this year. Bapex, a company under Petrobangla, and other companies will also need money for gas development, as well as for importing gas.
In terms of development, to increase the production of gas from its own sources, all the necessary funds for exploration should be allocated in the budget. A disadvantage for Bangladesh here is that any gas exploration is dependent on foreign exchange.
It is not done with local currency because all the equipment, starting with machinery, has to be imported from abroad. Therefore, a part of the foreign currency should be allocated for the development of the energy sector. Additionally, the government has to allocate money for renewables.
This year, the budget of the Power Division should be reduced and the budget of the Energy Division should be increased, because this year we have a more severe energy crisis. And this is the biggest crisis this year. Usually, in previous years, the Power Division was given Tk25,000-26,000 crore, whereas the Energy Division was given Tk2,000-3,000 crore.
Since there is no major expansion of the power sector this year, we are not building any new power plants. Only transmission and distribution will require some money. There are two places in power generation, Matarbari and Rooppur, which will require some money to complete the ongoing work. Additionally, some money will be allocated to the Power Division to keep the ongoing projects running. But it will not be more than the last few years, so the Power Division will need less money this year.
The Energy Division used to receive a small amount of money, Tk2,000-3,000 crore, but that amount should be increased. As much investment as is required for gas production from domestic sources should be invested.
We also have to import additional LNG and coal to maintain the energy supply. The problems being discussed today are mainly due to the energy crisis. Today, power supply to industrial plants is decreasing, and gas supply is diminishing.
Without industrialisation or production in the country's industries, the country cannot develop. Energy is the driving force of the economy; to keep the wheels of the economy moving, we must ensure the supply of energy above all else so that our economy survives. Our main crisis at present is the energy crisis.
We earn foreign exchange by exporting products abroad. We have to ensure our energy supply to manufacturing industries. Tk10,000 crore or Tk20,000 crore is really not sufficient to meet the needs of the country's Energy Division. In my opinion, at least Tk10,000 crore should be allocated for the Energy Division this year.
Dr M Tamim is a professor of Petroleum and Mineral Resources Engineering at Buet. TBS Correspondent Joynal Abedin Shishir interviewed him over the phone.
