The government has opted for a 15% reduction in the allocation for the Ministry of Power, Energy, and Mineral Resources in the proposed budget for FY-2425.
The allocated budget for this fiscal year stands at Tk30,317 crore, a decrease from Tk34,819 crore in the previous fiscal period.
Notably, the Power Division witnessed a significant cut of Tk 4,595 crore, while the Energy and Mineral Resources Division saw a slight increase of Tk 93 crore compared to its previous allocation.
Specifically, the allocation for the Power Division amounts to Tk29,230 crore, while the Energy Division receives Tk1,087 crore.
During the budget speech, Finance Minister Abul Hassan Mahmood Ali highlighted the growth in power generation capacity, which has risen from 4,942 MW in 2009 to 30,277 MW presently, inclusive of captive and renewable energy sources. He also noted ongoing construction efforts, with 27 power plants totaling 9,144 MW in capacity currently under development.
The finance ministry emphasized the government's commitment to prioritizing the power sector's development, focusing on enhancing generation, transmission, and distribution systems. With the achievement of universal electricity coverage already accomplished, plans are underway to increase power generation capacity to 40,000 MW by 2030 and 60,000 MW by 2041.
Additionally, the government proposed a special allocation of Tk 100 crore to promote renewable energy development and usage. Another Tk 100 crore was earmarked for research in the blue economy sector. Plans also include expanding power transmission lines to 24,000 circuit kilometers by modernizing the grid, an increase from the current 15,246 circuit kilometers.
