Awami govt set to destroy backbone of Bangladesh economy

[idune]

Decline in banks' profit dims corporate tax collection prospects

Published : Sunday, 25 November 2012

Tax collections from large corporate taxpayers might trail much behind the projected level in the current fiscal year (FY 2012-13) in view of lower level of profits, now estimated for most of the country's private commercial banks (PCBs).

"The decline in the profit level of commercial banks is now our major concern. We have observed that financial condition of the majority of the banks worsened in the third quarter of this calendar year," said a senior tax official.

There are a total of 330 large corporate taxpayers including banks and nearly 706 individual taxpayers under the Large Taxpayers' Unit (LTU) of the National Board of Revenue (NBR). Of the corporate taxpayers, banks contribute nearly 60 per cent to the LTU's aggregate revenue income earnings.

The government set a tax collection target of Tk 123.50 billion for the LTU for fiscal 2012-13, up by 33 per cent from the Tk 94 billion target of the previous fiscal.

Last year, the LTU brought 50 merchant banks under its supervision to augment revenue collections.

But the merchant banks were also facing losses due to their financial straits, largely because of the fall-outs from the capital market collapse, the senior tax official said.

Until November 15, the LTU received 279 tax returns from the corporate taxpayers and 356 tax returns from individual taxpayers.

Meanwhile, a total of 192 individual taxpayers submitted applications to the LTU, seeking extension of time for submission of their tax returns.

The LTU received a total of Tk 7.60 billion in tax collections from both corporate and individual taxpayers. Of the amount, the unit collected Tk 7.41 billion as income taxes from 279 corporate taxpayers and Tk 193 million, from individual taxpayers. The tax official said about 1,000 tax-return files of individual taxpayers are lying with the LTU.

Usually, the directors of the companies who are paying taxes under the LTU are the individual taxpayers.

Financial Express :: Financial Newspaper of Bangladesh

 

[idune]

Deficit, debt in economy may worsen: UO

Staff Correspondent

The Unnayan Onneshan, a local think tank, has predicted that deficit in economy might deteriorate in the current fiscal year of 2012-13. Analysing the trends of the economy and the observed gap between the proposed and the revised budgets, the Unnayan Onneshan made this prediction in its November issue of Bangladesh Economic Update released on Saturday.The gap between the overall earning and expenditure of the economy has widened while foreign grant as per cent of GDP has taken a downward trend, resulting in an increased deficit and debt in the economy, the UO said.The organisation noted that the per capita debt burden has been increasing over the years.

Per capita debt burden is projected at Tk 2,998.61 at the budget of FY 2012-13. In FY 2011-12, the burden increased by 24.42 per cent.The UO observed that continuous increase in deficit and the consequential rise in debt were results of the government’s lack of farsightedness and associated rent seeking behaviour.

‘People in general are bearing the burden in terms of higher prices in electricity, lesser investment in social sectors, high inflation and higher incidence of regressive taxes such as value added tax,’ it said.

Noting that the ever-rising public debt has been exerting a serious pressure on the macro-economic stability, it said that deficit financing put a pressure on real interest rate, crowding private investment out.

Referring to the International Monetary Fund and other like-minded groups, the organisation observes that the suggestion of doing away with energy subsidies or increasing the energy tariff to match the generation cost do not address the root cause of the problem.‘The government should close the rental and quick rental power plants and increase public investment in power and energy sector,’ it suggested.

The UO said that deficit as percentage of GDP had reached the peak in the last eleven years. The rate of growth of deficit was 24.36, 12.18 and 33.05 per cent in FY 2009-10, 2010-11 and 2011-12 respectively.The organisation also said that the rate of growth in expenditure was more than that of revenue collection, which induces deficit. An upward trend has been observed in the government expenditure since FY 2010-11.

According to UO, in FY 2011-12 the collection of tax on income and profit was only one-third of the total potential.
‘If it is possible to collect tax from all taxpayers identification number holders, revenue will increase by 40 percent,’ it said.

New Age | Newspaper

 

[idune]

Import dives as industrial sector stumbles

AKM Zamir Uddin

The country’s import bill payment registered a negative growth of 11.04 per cent in the first four months of the current financial year compared with a 26.46-per cent growth in the same period of the previous financial yearas the industrial sector had been reeling for the last few months.

Bangladesh Bank officials told New Age on Thursday that the import payment had declined in July-October due mainly to a decreased import of capital machinery, industrial raw materials and food grains.

According to the data released by the BB on Thursday, the settlement of letters of credit for imports in July-October stood at $10.75 billion against $12.09 billion in the same period of the FY 2011-12.

The BB officials and an economist said that the growth in import of capital machinery and industrial raw materials had dropped in the period because of a negative investment scenario now prevailing in the country

They said that a number of banks were now showing reluctance to open fresh LCs after the Hallmark Group-Sonali Bank scam and that also played a role in the negative import growth. The contractionary monetary policy taken by the BB also contributed to the lower import growth..

Under the circumstances, the gross domestic products expected for this financial year would not be achieved, they said.
The BB data showed that the opening of LCs had also registered a negative growth of 11.54 per cent in July-October of the FY 2012-13 compared with that of 4.23 per cent growth in the same period of the FY 2011-12.

LCs worth $11.52 billion were opened in the first four months against LCs worth $13.02 billion in the same period of the FY 2011-12. The BB data showed that the growth in the settlement of LCs for industrial raw materials and capital machinery had registered a negative growth of 4.51 per cent and 28.16 per cent respectively in July-October compared with those of 22.12 per cent and 47.05 per cent growth in the same period of the FY 2011-12.

LCs settlements in the first four months of the current financial year for industrial raw materials and capital machinery were worth $4.29 billion and $644.45 million respectively against $4.49 billion and $897.06 million in the corresponding period of the FY 2011-12. A BB official said that the import of food grains had decreased significantly in the period due mainly to a bumper food production. The BB data showed LC settlements for food grains (rice and wheat) in July-October had posted a negative growth of 42.38 per cent from a negative growth of 11.15 per cent in the same period of the FY 2011-12.

LC settlements for food grain imports in July-October of the current financial year were worth $246.66 million against $428.10 million in the same period of the previous financial year. Former BB governor Salehuddin Ahmed told New Age that an unfriendly environment for investment was now prevailing in the country due to political turmoil. He said, ‘Businessmen are now reluctant to expand their investment. So, the growth in import of industrial raw materials and capital machinery continues to decline.’
He said that lower than expected export growth was another cause of the negative import growth.

The country’s export growth significantly decreased in the first four months of this financial year because of economic crisis in Europe and USA, he said. A large amount of industrial raw materials is usually used to produce export products, he said.
Another BB official said that the mutual understanding among the commercial banks had weakened after the Hallmark Group scam. Business associations recently alleged that a number of banks had denied opening LCs and that created an adverse condition for them, he said.

New Age | Newspaper

 

[idune]

Seven rental power plants get one year extension
Experts term decision suicidal
Jasim Khan

The government has extended the contract period for seven quick rental power plants by a year after expiry of their tenure despite criticism by energy experts and opposition parties.

As the large power plants could not come into operation timely as per the roadmap, the government had no alternative to renewal of the contracts with those rental power plants, a high official at the Power Division said Thursday.

According to sources, extension of the contract period of those power plants by another year would cost the government Tk 12 billion.

Earlier the government had signed agreements with 15 quick rental power plants for three and five years. Of them, seven plants, hired for three years, got the contract period extended by one more year.

Ministry sources said as per the contracts the government retains the same rates of power purchase and the same terms and conditions as had been in the previous deals, including supply of subsidised fuel. In 2009, the average electricity production cost was below Tk. 3/kWh. The energy mix for power production was roughly 82 per cent of gas, 10 per cent of oil, 4 per cent of hydro and 4 per cent of coal.

Within a span of three years the share of oil in power production shot up to 30 per cent reducing the gas component to 67 per cent. So, the average production cost more than doubled to Tk. 6.5/kWh. As a result, the government was forced to raise the electricity tariff several times recently.

Meanwhile, energy experts termed the decision suicidal and asked the government not to extend the agreements with the power plants.

Dr Akbar Ali Khan, former adviser to caretaker government, said the government could solve the power problem by repairing the existing plants and solving the gas crisis instead of opting for rental power plants again

"Not a single country in the world succeeded in solving their electricity crisis through rental power plants," he said.

Why the people would pay excessive electricity bills resulting from system loss, mismanagement, corruption and quick rental power plants, he asked..

M Tamim, former caretaker government adviser, said stopping coal development and gas exploration despite the presence of clear economic advantages forced the government to go for short-term and expensive oil-based rental power plants. The economy simply could not afford or sustain the burden of importing expensive fuel either, he added.

Apart from supply interruption risk, the international energy price volatility is also a source of great uncertainty.

Engr BD Rahmatullah said the government would have to provide over Tk 20.7 billion in subsidy yearly if it takes 2,000 MW power from quick rental and rental power plants and the cost would go up with the increasing requirement.

Terming quick rental power plants suicidal for the nation's economy, Engineer Sheikh Mohammad Shahidullah, convener of the National Committee to Protect Oil, Gas, Mineral Resources, Power and Port, demanded reopening of all closed state-run power plants and repair of the rest to boost electricity production.

Shahidullah said it would be possible to produce additional 2,400 megawatts of power from the existing structure if the government reopened and repaired all the closed plants.

Seven rental power plants get one year extension

 

[Hammer-fist]

I have reported this thread to the mods and such news should be posted on the sticky thread about economics.

Today another economic thread was locked and Idune "thanked" webmaster for locking it:

http://www.defence.pk/forums/bangla...may-overtake-western-countries-2050-a-16.html

Idune, the next time you start personal attacks against members and call someone a "thug" I will report you.

 

[M_Saint]

I have reported this thread to the mods and such news should be posted on the sticky thread about economics.

Today another economic thread was locked and Idune "thanked" webmaster for locking it:

http://www.defence.pk/forums/bangla...may-overtake-western-countries-2050-a-16.html

Idune, the next time you start personal attacks against members and call someone a "thug" I will report you.

This thread shows the reality of BD's economy unlike the one of Captain of RAWAMY Fan Boy's bogus, futuristic-concocted, glorified ones. What IDUNE posts is always facts unlike RAWAMY fan boy, thug's futuristic lies.

 

[idune]

This thread serves purpose of impact analysis from devastating Awami League policy and action.

This thread also collects these information valuable for analysis in one single thread rather than wholesale spamming captain and hammer-fist had been doing.

This thread has nothing to do with day to day economic news.

 

[Hammer-fist]

1. The purpose of this thread is to vilify the Awami League, even the very title of this thread indicates that.

In other words it is anti-Awami League propaganda, one sided selective propaganda meant to arouse hatred for the Awami League as much as possible.

2. It is designed to encourage support for the enemies of the Awami League, the BNP and this whole thread is not an objective examination of Bangladeshi economic affairs but a one-sided stream of attacks on the Awami League where psychopathic hate-filled anti-Bangladeshi fanatic Idune will attack, insult and abuse anyone who even suggests that though the Awami League are corrupt others are corrupt too.

3. Fortunately though Bangladesh has hate-filled anti-Bangladeshi fanatics and parasites like Idune on our soil, our economy is progressing despite the corruption of both the Awami League and BNP.

 

[Skies]

This thread is fine until the news are true and based on what is happening and has happened already by the present govt who is accountable now. It's not futuristic based which is used to divert the attention from present. Everyone is welcomed to prove if any news is false here.

 

[Hammer-fist]

The Awami League are corrupt.

The BNP are corrupt.

Jamat are corrupt.

The Bangladeshi economy however is growing and progressing even according to foreigners.

Razakars seek to potray a negative image of Bangladesh as a failed state so people will:

1. Hate Bangladesh.

2. Think the independence of Bangladesh was a mistake and support the razakar agenda for making Bangladesh a colony of Pakistan.

 

[idune]

Export-import slide takes toll on revenue collection

Staff Correspondent

Negative growth of the country’s import and export has taken toll on revenue collection by National Board of Revenue.
The NBR has failed to achieve its revenue collection target in the first five months of the current fiscal year falling short by Tk 2,900 crore in the period, NBR officials told New Age on Sunday.

The negative growth in import and poor growth in export in July-November resulted negative growth in revenue collection from export duty and supplementary duty at local levels, they said.

Revenue earnings from import duty, supplementary duty at local levels and value-added tax also marked a poor growth over the period, according to NBR data to be released very soon. Revenue collection was Tk 36,363.52 crore in July-November against the target of Tk 39,263.52 crore for the period.

The revenue collection in July-November, however, grew by 15.06 per cent compared with the same time of the last year but the growth is slower compared to the growth target of 18.36 per cent set by the tax administration for the entire year.
The revenue board has set a target to collect Tk 1,12,259 crore in the current fiscal year.

According to the data, revenue collection from export duty grew by a negative 28.35 per cent because of sluggish exports in the period and other taxes and duty excluding travel tax by a negative 33.33 per cent while supplementary duty at local level grew by a negative 2.25 per cent. Collection from supplementary duty at import level grew only by 1.69 per cent and import duty grew by 7.02 per cent mainly due to drop of imports over the time, the data showed. Revenue earnings only from income tax succeeded its target and grew by 27.11 per cent in the period.

According to Bangladesh Bank data, overall import declined by 13.83 per cent in November while in July-October import had declined by 11.35 per cent compared with the same period of last year. Export also experienced little progress and grew by 4.36 per cent in July-November of the current fiscal year, lower by 4.84 per cent of the government’s target, showed the data released by Export Promotion Bureau. In July-November, the NBR collected Tk 9,823.30 crore from income tax with 27.11 per cent growth, Tk 13,012.82 crore from customs duties with 9.90 per cent growth and Tk 13,275.71 crore from VAT with 12.10 per cent growth.
The NBR set a revenue collection target of Tk 40,400 crore from VAT with 17.24 per cent growth, Tk 35,600 crore from customs duties with 14 per cent growth and Tk 35,300 crore from income tax with 25 per cent growth for the current fiscal year.
Amid such a gloomy picture in revenue collection, the finance ministry has recently asked the NBR to raise the target of revenue collection by another Tk 8,000 crore for the current fiscal year.

Though the NBR chairman on Saturday said that they would intensify its monitoring, strengthen efforts and widen tax net in coming months to achieve the target, officials concerned expressed doubt on achieving the target. The officials said they would face difficulty in collecting the increased revenue due mainly to moderate growth in duty at import level and negative growth in export duty and supplementary duty at local level resulted by drop of import and export of the country.They, however, said revenue earnings might be increased in the latter months of the fiscal year as traditionally in the first few months the revenue collection remained dull.

New Age | Newspaper

 

[idune]

Govt on fresh bank borrowing spree

AKM Zamir Uddin

The government started to borrow heavily from the commercial banks from the second week of this month for meeting its daily expenses which will create extra pressure on the banking system in the coming months, said Bangladesh Bank officials.
According to the latest BB data, the government borrowed Tk 1,047.17 crore in just three working days between December 12 and December 17 from the commercial banks.

The government borrowing this financial year from the banking source stood at Tk 9,539.62 crore on December 12 and the figure went up to Tk 10,586.79 crore on December 17 in which the whole amount had been borrowed from the commercial banks.
The government had repaid Tk 6.25 crore to the central bank till December 17 it had received as loans earlier. A BB official told New Age on Wednesday that the government bank borrowing in the first few months of FY 2012-13 had stood at a tolerable level.The government borrowing this financial year from the banking source stood at Tk 15.57 crore on August 6, Tk 2,511.55 crore on October 4, and Tk 6,912.53 crore on October 23.

The overall bank borrowings by the government increased to Tk 1,02,413.96 crore on December 17 from Tk 92,315.96 crore on June 30.The government has set a target to take Tk 23,000 crore loans from the banking sector in the budget for FY 2012-13.

The government’s total borrowing in the FY 12 stood at Tk 21,983.66 crore resulting in a liquidity crisis in the banking sector and squeezing of credit supply to private sector.The BB official said that it was not a positive trend that the government had taken the whole amount of borrowing from the commercial banks.

He said the liquidity pressure in the scheduled banks had recently eased due to a declining trend of opening and settlement of letters of credit.The banking sector may face a liquidity problem in the coming days when it comes back to open LCs, he said.

Full report:
New Age | Newspaper

 

[T-Rex]

The Awami League are corrupt.

The BNP are corrupt.

Jamat are corrupt.

The Bangladeshi economy however is growing and progressing even according to foreigners.

Razakars seek to potray a negative image of Bangladesh as a failed state so people will:

1. Hate Bangladesh.

2. Think the independence of Bangladesh was a mistake and support the razakar agenda for making Bangladesh a colony of Pakistan.

Most people of Bangladesh prefer to throw shoes when an indian rajakar like you says something. Just as court verdicts are imported from abroad economic statistics can also be tailored to suit the BAL agenda. There are newspapers funded by the RAW to publish this kind of manufactured statistics.

 

[idune]

Manpower export dropped in last 4yrs

Md. Owasim Uddin Bhuyan

But for 10 countries with the UAE topping them, until 2012 a handful of Bangladeshis had gone to 108 countries on employment since 2009.

Official records show that 20 Bangladeshi workers had gone to 20 countries in eight years since 2004, one to each, that too on their own initiative. And the government can take no credit whatsoever for sending them to these countries.

And 1,859 workers had gone to 108 countries on their own in eight years since 2004. Of them Hong Kong took the highest number of 99 workers, followed by Fiji with 98 and 20 countries including Brazil and Austria took one each. .

The records disprove the government’s much trumpeted success in expanding the labour market for Bangladeshi workers in 155 countries since it took power in 2009.

One Bangladeshi worker had gone to each of Albania, American Samoa, Armenia, Austria, Belarus, Bosnia-Herzegovina, Brazil, Bulgaria, Colombia, Cuba, East Timor, Estonia, Gabon, Latvia, Macau, Mali, Myanmar, the Netherlands’ Atlantis, Nicaragua and Paraguay.When asked Expatriates’ Welfare and Overseas Employment Ministry secretary Jafar Ahmed Khan told New Age on Monday, one or two Bangladeshi workers had gone to many of these countries on their own initiative. Later the government only endorsed them, he said.

Official records show that from 1976 to 2012, major destinations for Bangladeshi workers were Saudi Arabia, UAE, Kuwait, Oman, Qatar, Bahrain and Libya.In 2012, Saudi Arabia dropped to the sixth position as a destination for the workers from Bangladesh. The decline began in 2009. Malaysia became a destination in 1979, Singapore in 1980, Lebanon in 1992, Brunei in 1992, South Korea in 1994, Egypt in 2000, and Jordan in 2002.

UAE stopped recruiting new workers from Bangladesh in September, 2012. But it continues to provide visas to spouses.

In 2012, Oman became the destination for second largest number of workers from Bangladesh employing 1,56,765 workers, Singapore took the third position with 53,383 workers, Qatar followed with 25,904, next comes Bahrain with 19,777, followed by Saudi Arabia’s 19,280, Libya took 14,634, Lebanon—13,660, Jordan –10,371 and Italy took the 10th position taking 8,690 workers from Bangladesh.

The government has been working to send workers in larger numbers to the newer destinations, said officials. Bureau of Manpower, Employment and Training officials said that Bangladeshi workers started going to 157 countries since June 15, 2004.

BMET records show that so far 22 Bangladeshi workers had gone to 11 countries including Burkina Faso, Chili, Grenada, Guyana, Ivory Coast, Kyrgyzstan, Luxemburg, Mozambique, Niger, the Philippines and Yugoslavia. It also shows that a total of 18 workers had gone to six countries including Argentina, Jamaica, Rwanda, Uganda, Venezuela and Zimbabwe and a total of 24 to six other countries including Denmark, Ecuador, Iceland, Senegal, Trinidad and Tobago and Ukraine.

Official records show that Bangladesh’s manpower export drastically fell in last four years particularly to the countries in the Middle East.

In 2007, Bangladesh exported 8,32,609 workers, in 2008 – 8,75,055 workers.

Bangladesh’s manpower export sharply dropped to 4,75, 278 in 2009.The trend continued in 2010 when Bangladesh could export 3,90,702 workers, but rose to 5,68,062 in 2011 and 5,94,798 in 2012, though the exports were much less compared to 2007 and 2008.

Only 89 Bangladeshi workers had gone to Kuwait in four years since January 2009.

Expatriates’ Welfare and Overseas Employment minister Khondoker Mosharraf Hossain recently said some 19,78,150 workers went abroad in last four years and remitted $ 42 billion, compared to some 9,33,797 workers who had gone abroad during the first four years of the last BNP-led t government to remit $ 10 billion. Mosharraf also said new labour markets were found in 80 countries during the tenure of the Awami League-led government.

http://www.defence.pk/forums/bangla...t-destroy-backbone-bangladesh-economy-22.html

 

[idune]

4 YEARS OF GOVT
Consumers wilt under burden of power price

Manjurul Ahsan

Power consumers have started bearing the brunt of the government’s quick fix policy for increasing electricity generation by fuel oil-fired rental plants by paying about 60 per cent more than what they spent before March 2010.The average retail price of electricity has been increased to Tk 6 a unit a kilowatt-hour (unit) from Tk 3.76 in six phases since March 2010.

In 2010, Bangladesh Energy Regulatory Commission raised the price by about Tk 0.24 a unit at one go, in 2011 by Tk 1.02 a unit in two phases and in 2012 by about Tk 1 a unit in three phases.

The commission has doubled the bulk power prices, from Tk 2.37 a unit to Tk 4.70 a unit, in six phases since February 2011.The average power generation cost has more than doubled – from Tk 2.59 a kilowatt-hour (unit) to Tk 5.57 a unit – for an increase in power generation by 47 per cent in last four years.

Besides, the government annual subsidy in power generation has been increased more than four times – from Tk 900 crore to Tk 3,850 crore. The amount would cross Tk 7,000 crore for the current fiscal to increase power generation from rental plants during boro season, a power division official said.

The government went for expensive and short-term projects instead of exploring low-cost ways like re-powering of the old public sector plants to increase power generation as well as save gas in the inefficient plants.

The increased subsidy in power sector has caused mounting budgetary pressure forcing the government to hold back the growth in budgetary allocation for other infrastructural development and social sectors like health and education, experts said.

The situation is likely to worsen in coming years as the government has failed to install the low-cost big power plants, particularly those run by gas, in its four years in office, forcing the Power Development Board to be more dependent on expensive rental plants.

The prime minister’s energy adviser Tawfiq-e-Elahi Chowdhury sought to justify the situation by saying that the government had no option but to go for costly means to increase power generation in a short time. He said that the government had doubled power generation in four years. But, power expert Shamsul Alam said that the government had increased base-level of power price on various pretexts so that business became more profitable for private companies.

Private sector has started dominating power generation by supplying 56.72 per cent electricity to the national grid in 2011-12 financial year, from 41.68 per cent in the 2009-10 financial year.According to the government’s mega plan, the contribution of the private sector to electricity generation would hit 62 per cent by 2016.

In order to achieve the goal, the government has so far signed 58 contracts for installation of 60 power plants with a combined generation capacity of more than 8,000mw. Out of the 60 projects, private entrepreneurs got 39 with a combined generation capacity of more than 5,000mw.

Thirty-two power plants with 2,751mw generation capacity have been installed, of which 20 plants with 1,653mw capacity have been installed by the private sector.
PDB extended seven contracts with rental power producers for purchase of electricity for one to two years under a special act.
Earlier, under the same act, the PDB signed 15 contracts to buy power from 17 quick rental plants with a combined generation capacity of 1,388mw for three to five years at up to Tk 20 a unit. The government has awarded six more projects with a combined capacity of 350mw to the private sector to buy electricity for 15 years.

The government on September 17 extended effectiveness of the Speedy Supply of Power and Energy (Special Provision) Act, 2010 by two more years so that it could award projects without tender.

Officials said that implementation of most of the large projects were hindered mainly by fund crisis.Even the government’s move for privatisation of the sector for solving investment problem did not succeed in terms of project implementation in expected time, officials said.

Economists said that the rise in power tariff had fuelled inflation which would continue for long increasing the production cost of industrial and agricultural produces with a cascading impact on cost of living.

Bangladesh Institute of Development Studies research director Zaid Bakht told New Age that lower- and middle-income groups and the small- and medium-industries were suffering the most.Centre for Policy Dialogue fellow Debapriya Bhattacharya expressed a similar view saying that the consumer price index had come down in recent years indicating a fall in purchasing capacity.

Even heavy industries were losing their competitiveness in the global markets for frequent rise in power tariff.




The Energy Commission has increased the prices for domestic consumers with a monthly consumption of up to 100 or 75 units by Tk 0.81 a unit, from Tk 2.50 to Tk 3.31 a unit under four utilities except the Rural Electrification Board, and for domestic consumers with a monthly consumption of up to 400 units by Tk 1.78 a unit, from Tk 3.15 to Tk 4.93 a unit.
Among other consumers, the rise in retail prices were Tk 0.58 a unit – from Tk 1.93 to Tk 2.51 a unit – for irrigation pumps, Tk 2.94 a unit – from Tk 4.02 to Tk 6.95 – for small industries, Tk 3.01 a unit – from Tk 3.80 to Tk 6.81 – for medium industries drawing power from a 11kv line, Tk 2.90 a unit – from Tk 3.58 to Tk 6.48 – for heavy industries taking power from a 33kv line, Tk 3.34 a unit – from Tk 2.82 to Tk 6.16 – for heavy industries drawing power from a 132kv line and Tk 3.70 a unit – from Tk 5.30 to Tk 9.0 – for commercial consumers.

The prices of electricity fixed for most of the categories of the REB consumers are much higher than that of the consumers under other utilities.Among the political parties, only left-democratic groups have consistently protested at the frequent price hike of electricity in last four years.Experts said the government could have increased power generation by more than 2,000mw in three years from the old gas-fired plants in the public sector. Such electricity would cost the power board less than Tk 1.50 a unit.

Out of 11 public sector low-cost power projects, nine with 1,700mw capacity, which were scheduled for installation by 2012, are expected to be delayed by up to two years.Among private-sector power plants, the Power Division has deferred implementation of two other plants with 150MW capacity each by a year although they were scheduled to be set up by 2012.
Similarly, of the six big plants in the private sector which were expected to be installed by the next year, the deadline for four plants with 1,000mw capacity has been deferred by up to two years.

The installation of three other private-sector plants with a combined generation capacity of more than 1,000MW is still uncertain although they are supposed to be completed by January 2013.The percentage of the population brought under power grid connectivity after the present government took office has increased to 53 per cent from 48 per cent in 2009.

New Age | Newspaper