Tax on solar panels to be removed if needed: PM Hasina

Prime Minister Sheikh Hasina has said the use of solar power should be increased and tax on solar panels can be lifted to encourage private sector investment in this sector.

"If private entrepreneurs want to invest in solar power, they will be given all kinds of support. Duties and taxes for import of solar panels will be waived if needed," she said at a meeting of the Executive Committee of the National Economic Council (Ecnec) on Tuesday.

Briefing the media after the meeting at the NEC Bhaban, Planning Minister MA Mannan said the prime minister has ordered a 100% transition to solar power for irrigation, instead of using diesel.

Satyajit Karmaker, secretary of the Planning Division, said, "Our diesel-powered irrigation system uses 81 lakh litres of diesel annually. To address this, the prime minister has ordered a 100% transition to solar power for irrigation."

State Minister for Planning Dr Shamsul Alam said, "We have a long way to go in solar power. Around 20% of the total electricity generated in India comes from renewable energy whereas only 3.50% of electricity in our country comes from renewable energy."

The PM has once again ordered to bring down inflation in the Ecnec meeting, said the planning minister, adding, "The premier said people are suffering due to inflation and our main responsibility at this moment is to rein in inflation."

Planning Minister MA Mannan also said the premier directed ministries concerned to expedite the use of foreign loans waiting in the pipeline. "Because if the use of foreign loans can be increased, the pressure on the local currency will be reduced. It will also be helpful for reserves."

Abdul Baki, a member of the Industry and Energy Division at the Planning Commission, said, "At the end of the last fiscal year, the amount of foreign aid in the pipeline was $50 billion. According to the recent deals with various development partners, another $3-4 billion have been added to the pipeline. As project implementation speeds up, the size of the pipeline will start to reduce."

The state minister for planning said, "Development projects are financed by the government, by borrowing from the banks with a usual interest rate of 8%. But loans are taken from abroad at an average of 3% interest rate. So, foreign debt is good for us but its use should be increased, and our spending capacity should be increased."

At the Ecnec meeting, the prime minister directed officials concerned to reduce the use of land while constructing government offices or buildings, the planning minister said.

In addition, the prime minister asked officials concerned to build sheds in Haor areas to reduce the number of deaths occurring from lightning strikes. For that, the premier suggested undertaking a pilot project, the planning minister added.

A total of 16 projects, at a total cost of Tk38,961.77 crore, were approved by the Ecnec meeting on Tuesday. 

Of these, eight are new and eight are revised projects. Half of the approved projects are rural infrastructure development projects.

Among the approved projects are the improving Urban Governance and Infrastructure (IUGIP) project involving Tk6,345.08 crore, Agriculture irrigation through solar-powered pumps (2nd revised) with an additional cost of Tk200.77 crore, Physical infrastructures development of BCS Tax Academy (1st phase) with Tk116.32 crore, Construction of Bangladesh Chancery Complex at Berlin in Germany (1st revised) with an additional cost of Tk60.25 crore, Construction of Sunamganj-Madanpur-Dirai-Shalla-Jolshukha-Ajmiriganj-Habiganj highway's Shalla-Jolshukha road portion (1st revised) with an additional cost of Tk229.23 crore, Pedestrian underpass project at Hazrat Shahjalal International Airport with Tk1,183.83 crore, Third City Operations and infrastructural development project (3rd revised) with an additional cost of Tk84.52 crore, Replacement and modernisation of signalling and interlocking system at Ishwardi-Parbatipur section stations of the western region of Bangladesh Railway with Tk648.08 crore.

The other projects approved in the meeting are the Economic Acceleration and Resilience for NEET project with Tk3,348 crore, Khurushkul Special Ashrayan Project (1st revised) with an additional cost of Tk133.42 crore, Rural connectivity improvement project (1st revised) with an additional cost of Tk2,825.65 crore, Important upazila and Union roads widening and strengthening at Chattogram upazila with Tk3,110 crore, Constructing 1,490 metre long PC girder bridge over River Teesta on the connecting road between Panchpir Bazar-Chilmari upazila Sadar at Sundarganj upazila under Gaibandha district (3rd revised) with an additional cost of Tk39.30 crore, Important upazila and Union roads widening and strengthening at Rajshahi upazila with Tk2,400 crore, Important rural infrastructures development at Noakhali, Feni and Laxmipur districts with Tk2,650 crore and Herringbone bond for making rural earth roads sustainable (2nd phase, 1st revised) with an additional cost of Tk987.69 crore.

Meanwhile, the pilot project "Amar Gram Amar Shahar" was supposed to be presented at the Ecnec meeting, but it was not placed.

AKM Fazlul Haque, member (secretary) of the Agriculture, Water Resources and Rural Institutions Division at the Planning Commission, said, "We had preparations to place the project but we did not do so as a large number of projects were presented today. It will be presented in the next meeting."