DHAKA: Finance Minister Abul Mal Abdul Muhith Saturday strongly advocated for doubling the price of compressed natural gas (CNG) as he said the current rate is a fourth of the actual price.

The minister’s opinion came while he was addressing the inaugural session of an investment conference titled ‘Opportunity and Challenges in the Power and Energy Sector’ at Sonargaon Hotel in the city.

Currently, the motor fuel made from natural gas sells at Tk 16.75 per cft.  

He told the meet of potential investors that there is a huge difference between production and demand for power in the country.

“Some 40 percent of power stations of the country are 20 years old. We are compelled to manage power generation by using oil as we lack gas which is also very expensive,” he said.

Referring to budget allocation in subsidizing the power sector, the custodian of the national exchequer hoped that the subsidy would bring equilibrium in the demand and production sides of the sector.

He regretted that the Rural Electrification Board was not functioning properly—a common complaint from many quarters. “We have to develop it,” he said.

He also informed that the coal policy in the making would be finalized at the end of the year.  

The government earlier showcased a number of projects on power and energy sector to woo foreign investors in London, Singapore and New York. Saturday’s conference was the follow-up to those road-shows.
 
State Minister for power Enamul Hoque presided over the programme while Dr Toufiq-E-Elahi, adviser to PM for Power, and Energy and Power Secretary Abul Kalam Azad also spoke.  

Power Development Board chairman SM Alamgir Kabir sketched an overall scenario of the power sector before the businesspeople at the meet.

Investment Board Chairman SA Samad and Chairman of the Parliamentary Standing Committee on Power and Energy Md Subid Ali Bhuiyan were also present.

BDST 1530 HRS, JULY 3, 2010