BSS
  11 Jun 2026, 17:18

Power division gets Tk 14,996cr in new budget

SANGSAD BHABAN, June 11, 2026 (BSS) - Finance Minister Amir Khosru Mahmud Chowdhury today unveiled the national budget, proposing an allocation of Tk 14,996 crore to ensure uninterrupted supply of electricity along with improving efficiency of generation, transmission and distribution systems.

"The government has been working to increase generation capacity to 35,000 MW by 2030 and expand transmission lines to 25,000 circuit kilometers," he said. 

Placing a Tk 9.38 lakh crore national budget for the fiscal year (FY) 2026-27 in the Jatiya Sangsad (JS) this afternoon, Chowdhury said measures are being taken to improve efficiency of existing generation, transmission, and distribution systems.

He said incentives are being provided to encourage adoption of renewable energy sources, adding, "Modern technologies will be promoted to ensure efficient and cost-effective energy use across the industrial, agricultural, and residential sectors."

The finance minister proposed a zero percent tax rate on solar power sector until 2035 to encourage solar power generation, which is environmentally friendly, affordable and sustainable

"At the same time, I propose granting consumers a 5 percent tax rebate on payments made against their solar electricity bills. Measures have already been initiated to ensure transparency and accountability in the sector through the prevention of corruption and irregularities," he said. 

The minister said that the government took steps to ensure financial transparency and accountability through a review of capacity charges and power purchase agreements. 

"Special initiatives have been undertaken to expand electrification in remote and island areas. To maintain electricity tariffs at a reasonable level, measures have been adopted to establish power plants through competitive bidding processes," he said.

In the budget speech Chowdhury said that as part of modernisation efforts, work is underway to place distribution lines and substations underground in metropolitan areas. 

He, furthermore, said that plans were underway to generate between 30 and 50 per cent of electricity from renewable sources by 2050. 

In addition, construction of 2,400 MW Rooppur Nuclear Power Plant is progressing rapidly and approximately 300 MW is expected to be connected to the national grid by August 2026, followed by 1,200 MW by January 2027, the minister said. 

"Overall, our government is committed to establishing a self-reliant, affordable, uninterrupted, environmentally sustainable and modern electricity system," he said.