The government spent about Tk 3,612.47 crore (36.12 billion) on power subsidies in the first eleven months of the just concluded fiscal year (2016-17) mainly due to purchase of costly electricity from rental and quick rental power plants.
According to ministry sources, the subsidy in last fiscal might come down remarkably as compared to the government budgetary allocation of Tk 5,500.
“But the government grant might increase further in current fiscal year as the government plans to undertake more liquid fuel based power plants,” said an official concerned.
He said the government has already instructed the BPDB for initiating another 3000 MW liquid fuel based power plant by March next year.
Officials, however, hinted that the total subsidy will not exceed Tk 4200 crore.
“We are hopeful the subsidy will not cross of Tk 4200 crore last fiscial,” said another official on condition of anonymity.
He added the government has a plan to raise another round of power tariff hike immediately to lessen the subsidy burden on government.
The BPDB, officials said, had already projected an additional revenue income of Tk 3,500 crore in current fiscal by raising the power tariff in bulk level in order to minimize the loss.
