DHAKA, June 2, 2025 (BSS) - Finance Adviser Dr Salehuddin Ahmed today unveiled the national budget proposing an allocation of Tk. 22,520 crore aiming at ensuring energy security and modernizing the distribution system and generating 3,400 MW of electricity from clean sources by 2028.

"The process of formulating a new policy by updating the Renewable Energy Policy 2008 is in its final stage. It has been decided that 30 percent of the country's total electricity will be generated from renewable sources by 2040," he said. 

In the budget speech, he proposed to allocate Tk. 20,342 crore for power division and Tk. 2,178 crore for energy division in the fiscal 2025-26 (FY26) to ensure transparency and accountability and modernize distribution system, carryout various development works for mineral resources. 

Ahmed said an Integrated Power Sector Master Plan was prepared and under this plan, a target was set to generate 3,400 MW of electricity from clean sources by 2028.

He said a project was taken to establish Eastern Refinery Limited, Unit-2, which will have the capacity to refine 3 million metric tons of crude oil every year to meet the growing demand for refined oil. 

The state-run BAPEX has a plan to carry out a 270 km geological survey, a 700 km 2-D seismic survey and a 700 square km 3-D seismic survey between FY202526 and FY2027-28, he added. 

"The BAPEX has planned to drill 69 wells and complete the workover of 31 wells using its own rigs. At the same time, steps are being taken to develop cost-effective and sustainable infrastructure to help control energy prices as medium term," he continued. 

The government repealed the 'Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010' along with forming a separate committee to review tariff structures of purchase agreements, re-negotiate them and make recommendations, the adviser said. 

In the budget speech, he said 40 MW of hydropower at an affordable price will be imported from Nepal during summer under an agreement of the sub-regional cooperation, which was signed on October 3, 2024. 

"The construction of 2,400 MW Rooppur Nuclear Power Plant is progressing fast. We hope that it will be possible to supply electricity from this plant to the national grid by December of this year," he added. 

The government has taken initiatives to increase oil and gas exploration and production through its own effort to ensure energy security, he said. 

"Besides, about US$570 million in arrears for imports was paid to ensure a steady supply of fuel oil. Vehicle Tracking System devices using SFDMS technology were installed in 2,465 fuel oil tank lorries across the country to ensure transparency and safety in the fuel transportation system, which will reduce risk of theft or adulteration during transportation of fuel," he added.